Monday, June 6, 2011

USD and SPX

I expect some kind of bounce of USD then a break down of the bottom trend line to mark the end of 5 waves on weekly. The low, however, should not exceed the bottom setup in 2008.
After that, USD is going to have a LIFE. Well, I have to admit, it depends on whether we are going to have a QE3 or same kind or not.


SPX is on the opposite.  I see an a-b-c broken down rather than a 5-wave. Thus I think there is good chance the A=C pattern will play out with a target of 1270-1275.


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