Wednesday, May 4, 2011
5/4 9:00am
The dollar is in a wave 4 rectangle, poised to descend to final low. This means a probable rally in gold/silver during the decline. It also means upward pressure on stocks. SP futures have come back up to the 30-minute M/A for the second time. There is another target beyond the 30-minute M/A which will probably be reached without rallying beyond the 30-minute M/A envelope. The hourly M/A is right at the wave iv top of 1357 which is where I want to short.
This is equivalent to cash SPX 1360, the cash wave iv top. This is expected behavior, although wave 2's often have bigger retracements. The cash SPX counts 5 down for wave (i) and we are in wave (ii).
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Good morning, Steve.
ReplyDeleteDo you have a target for the dollar drop that you're expecting? And how about time frame, the rectangle looks to be about 5 days wide, so how many days would you expect the dollar to drop once it begins its descent?