Several technical factors play into the near-term bear case, coming on the heels of three failed tests of resistance that underscore how U.S.equity markets are showing signs of fatigue.

Last March, the safe haven that was the U.S. dollar peaked in price at $89.50, as represented by the cash Dollar Index (DXY), as fear of a stock market collapse subsided. Today, with the Standard & Poor’s 500 Index nearly 60% off of its March low, the DXY is trading at $75.80/85, down 15% in seven months, and a clear reflection of the 180-degree shift of capital from safety to considerably riskier assets.

The assault on the U.S. dollar has investors looking to hedge exposure to further weakening in the worldâ??s reserve currency, and some are turning to exchange-traded funds for support.

Technically speaking, further consolidation is likely in order for stocks in the near term, which argues for reducing risk and avoiding lower-quality names. But until proven otherwise, there remains in effect a broader uptrend for the stock market.

Playing Weakness in the Dollar with ETF's