Tuesday, February 7, 2012

Take a look

The Dow Industrials- Daily Chart
You could even argue that the chart pattern above is a tripple top. Tripple Tops are known for their massive resistance.

The U.S. Dollar- Daily Chart
 Usually in a deeper retracement, prices experience large downside moves toward the lower end of the decline. This is under the assumption that we have a one to two day waterfall decline event.

The S&P 500- Daily Chart
If prices remain in their continued uptrend, then it can be expected that further consolidation will persist in the next few sessions. Under this scenario the 10 Day moving average would have a chance to catch up with price. It would be at this point that we experience one last surge in stocks to complete this grossly extended multi-month rally. However, I should also mention that if stocks are to quickly reverse from here, it would almost certainly produce a powerful move in the U.S. dollar. That scenario would assume that today's sell-off in the dollar was a bear trap. See the chart below to have a better understanding.

The U.S. Dollar- Daily Chart

S&P Hourly Chart- Wave count
It's almost over folks.

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