Friday, October 2, 2009

What's Next? - Followup

The dollar is indeed key to the market. We have 4 waves of 5 down for the equity indexes as I write this...It looks like the move down to fullfill wave 5 in markets will likely take the dollar up to the trend line I described in my previous Dollar post. A reaction correction from that point possibly starting on monday or sometime next week seems likely...this would be a bounce in the market for a short time to a few days (which would be a great short imo) and a pullback in the dollar which would be a possible buying opportunity. Its possible that wave 5 could complete by today's close or monday's open. We are directly over 50 day ma's and a reasonable position for a bounce. The question that remains is what kind of bounce...
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