I won't be much active during the holidays. So to most of you I wish you a Merry Christmas and a happy new year.
Let 2010 be full of happy and good things to all of you.
Anyways, I couldn't help myself to not leave here a brief picture on USD Dollar.
As I warned a few weeks back, the trend has changed. In terms of TA we've got all requisites of a trend change, a trend change that EW was long awaiting around the 74 level as I wrote here back in July.
For those that have a short memory: http://www.mybullmarket.org/2009/07/usd-update.html
I don't think I got too wrong on it. Let's see how the rest of the prediction rolls out. Which is right here:
Now, a curious fact is USD rocked up, EURUSD plunged everyone awaiting for S&P to plunge AAANND... nothing.
What I've said many times before in here that I was expecting was that Dollar, etc could go in their 1st wave down (EURUSD) or up (dollar index), while the stock indexes remained intact. My view was, these assets (currencies) could lead on the way down on their first waves and then rebound for their Wave 2 correction and stock indexes getting their tops during a lower high in currencies. It's pretty common since no asset has 100% correlation. The same happened in 2008 with oil, indexes and currencies. EURUSD topped when indexes were making their minor wave 2, while Oil topped when indexes were making their intermediate 2.
It would look something like this:
SPX Bullish triangle intact
3 months ago