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Thursday, January 21, 2010

Bumpy ride

Good morning everyone...

Nothing new in markets paradise...oh wait! Wrong...

The dollar is in such a hurry have you seen the index lately?

It is following the path I projected a couple months ago so nicely... for anyone that wasn't watching let me put you up to date...

I also referred a couple months ago, that I believed the US Dollar to have made the bottom while the indexes needed one additional leg up, just like it happened in 2008 but in reverse (the indexes were in wave 1 down while the currencies were still in the 5th wave up).

The same seems to be happening now... Currencies had their way for wave 1 down, while indexes were on their B wave. The 2nd correction wave on currencies matched with the last C wave up of indexes.

Now it seems currencies are beginning their waves 3 (the most powerful in EW terms) while indexes just started to roll over.

It still needs confirmation and the daily trend is still up, but if this carries for more one or two days the trend will definitely will change even on the dailies.

My opinion this may well be an important top. The first target now is around 1100 points on S&P, and at this pace it seems it will reach it quickly.

EURUSD seems to be in a hurry for 1.37'ish...
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