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Wednesday, November 4, 2009

Updated Dollar

The other day I suggested a Minute [ii] expanded flat for the UUP chart

As you can see, it panned out almost perfectly except it happened quicker than I thought.

Then I looked at the UUP daily today and noticed the tremendous volume. Did they turn on the HFT machines for it? At any rate, the dollar churned a lot today even though it was a down day for it. The dollar is a huge battleground. One clean break over the downsloping trendline would mean a breakout and you'll see a big squeeze no doubt.

It reminds one of the VIX chart that had the same down pattern for months on end. And it finally broke too and you see how quick the VIX shot up from its lows...

Certainly the SPX traced enough % for a Minute [ii] wave so one can imagine that if the dollar can gain traction and reverse to the upside hard and break out for good, then the markets will tank in dramatic fashion...
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