Ever since the Emerging Markets tanked below last ditch support in August, we have been watching for a rebound to what is now major resistance.  On EEM that is around 36. At 36.20 we are there.

It had looked like a no-brainer shorting opportunity, but a funny thing happened along the way; the USD got very wobbly and the Fed has started mentioning poor old Uncle Buck’s name a lot lately in their policy meetings. See this post for charts of USD, Euro and a great graphic culled from out there on the Twitter machine showing USD mentions by our fearless but maybe a little uncomfortable monetary leaders.

Back to the post’s main theme, a breakdown in USD would further instigate commodities and the likes of the EM’s. So the tenuous state of the dollar should be watched closely now since many other markets are going to take their cues from it.