Monday, September 28, 2009
Until the dollar turns, the Equities market will continue to be attractive. Above is a chart of the UUP - Power Shares DB US Dollar Index. Below is a close up. It appears that the USD may have bottomed. The price is above the flat topped Kumo, and both the Tenkan-sen and the Kijun-sen This is a bullish signal. The daily chart still has a ways to go before it will give a bullish signal.
I apologize for being a bit withdrawn lately, and just a bit gun shy. So many Bear traps have taken their toll. I've also been busy with work, yeah go figure my phone has been ringing, and I've had several bids accepted recently! Is the economy turning around? ... I doubt it. But it's good to be working again.
Anyhow it looks like a good place to go short again. I'm not exactly sure how to count today's SPX wave pattern, but the 1065 area is a 61.8% Fibonacci retrace for wave 2. If my microwave count is correct we should bounce off the 1065-1070 area in the morning before heading lower.
I'm currently watching the EUR/USD tonight, It appears to be following a very bearish downtrend channel. If I'm lucky the EUR/USD will be at 1.45 tomorrow morning.
I feel like I should not throw this out there because the triangle idea does not seem popular, but if we do see 1108 by weeks end , the bounce will look like a Bear on a rocket sled so I'm really not concerned.
Analysis presented on this Blog has only informational, and educational purpose, and does not represent a proposal for buying or selling currency contracts.
Posted by Robert Campbell at 15:20