Wednesday, November 11, 2009

Dollar tried again, and failed...

The dollar once again made a go at it, but got kicked back down the stairs again to close near its open. From the look of the price action on the SPX, we likely completed a small wave 4 today and are geared up for a wave 3 of 5 tomorrow that will finish off a larger wave 3 structure. If this is the case, then look for a gap at the open that doesn't get closed until we hit a higher high (currently at 1105). This has been the signature wave 3. If there is more to go on a wave 4, then any open will be sold, and I would look for a wave 4 completion target somewhere between 1088 and 1092.

We shouldn't have a move down to the hourly 34 SMA until we complete the current wave 3 at a higher high. The hourly is currently sitting at 1082. Should the USD get a confirmed breakout above the 34 daily SMA (currently at 76), then we may have seen the top in the stock market.


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