Tuesday, August 25, 2009

Update on the dollar

Update on the dollar (via UUP chart)
The 2 - 4 line held several tests and the dollar continues its pattern of accumulation. I have included a wave 3 target (but not a wave 5 target). 
The dollar setup an expanded flat pattern and held the maximum extremes for the pattern. Additionally it also held the little 2- 4 line off the 5 waves down in C from the 3-3-5 expanded flat for wave 2. A move out of this range should be explosive otherwise the pattern is invalid.


SP500 is at significant resistance here with two negative candles in a row. (Gravestone Doji and Inverted Hammer).
First resistance downtrend line is at the current prices...and the next resistance is 1125 or so. If the dollar is correct then this trendline we are testing now may represent the ending target of the rally off the march lows.

Perfect falling wedge...quite mature of a pattern.
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