Thursday, October 27, 2011

Powerful decline awaits…some quick charts

I did not have time to annotate the charts…however, the short squeeze into the resistance has occurred in quite a few separate markets. In addition, we are sporting one ugly gap…looks like it will not be a pretty. Additionally, I want to point on the pattern on the longer-term view of the EURUSD…this pattern is setting up for a breakdown and the measured move is indicated by my target arrow…which puts the euro near parity with the dollar. This will likely occur rather much faster than people may be expecting when it happens. This is especially the case when you consider the fourth chart and the clear zigzag bounce that the EURO has had. The implications are rather grave for the EURO. Of note also is that that Dollar has ticked near a major support level which can be seen in chart 6. Lastly, one of the things that occurred today that increases the likely hood of a powerful failure is the overshoots of the rising and falling wedges as displayed on the last chart. We overthrew the wedge boundaries and the result will likely trigger a reversal that ironically is much more powerful than the overthrows. Also, a last note, the usually leading NASDAQ dramatically underperformed its counterparts today.

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