Goldman Sachs made the reversal in the US Dollar official on Friday when analyst Fiona Lake said, “The fundamental picture for the dollar has improved substantially in recent weeks… As a result, we now think the dollar has bottomed.” Obviously, no analyst call makes a technical event official, but Goldman’s track record is impressive and deserves respect. However, the US Dollar Index is approaching important resistance that should yield a pullback. Check out the weekly chart:

There is significant resistance between $77 and $78. A pullback would be healthy and allow the index to gather some energy for its next push higher. A pullback will likely be accompanied by a bounce in commodity prices from short-term oversold conditions. This dollar pullback and commodity bounce could begin as early as Monday of this week. When this comes to frution, expect the S&P to pullback with the dollar.