Thursday, May 5, 2011

5/5 1:30

The stock market decline is working synergistically with the dollar to support a rally.  I was looking for a breakout of the dollar rectangle and a sharp, swift decline to finalize the wave count.  However, the blip down yesterday was a 5 wave on the cash DX chart and served to complete the long bear trend in the dollar.
The dollar is now in a bull market, confirmed by a 90-minute close .7% beyond the blue line:
Expect a reaction when the 90-minute M/A is reached.  However, the dollar will now provide a wind to our backs with bearish stock and commodity positions.  This, with the 30-day I1 turn, now clearly indicate that the monetary inflation trend is turning worldwide.
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3 comments:

  1. AnonymousMay 5, 2011 at 11:03 AM

    Steve

    I believe the top in the market is in and we have an EW 5th wave failure. I think it happened the night they announced they got Bin Laden, the futures shot up over 100 points but the next day the cash markets failed quickly in the morning. Time will tell but what a great way to catch the long players.

    Jack C

    ReplyDelete
  2. SteveKotelesMay 5, 2011 at 11:34 AM

    All the experts proclaimed what great news it was for psychology going forward. Gotcha!

    ReplyDelete
  3. AnonymousMay 5, 2011 at 12:07 PM

    Steve

    I’d say we got an impulse.

    Jack C

    ReplyDelete

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