Wednesday, March 24, 2010


Monthly chart - Indicators show no strength here. From the '01 low to the '08 high it formed a channel. Then a collapse to the 50% retracement (gray box) in '08. That set the yellow TL. The rise to backtest the channel and now cracking the 61.8% retracement of the rise in '09 as it channels down.

Daily chart - The gray box is the retracement zone surrounding the 50 to 61.8% retracement. That crack of the 1.34 level is surprising. Let's see if she wants that lower longer term yellow support line or the gray one below that. 
$DXY is gapping up this morning. You all know that I have been torn with the dollar being in an ABC corrective or something larger with an $89 target. At this time, if the rest of the world is going to collapse someone has to go up (that would be the greenback). Have no fear, it will collapse eventually as well.This chart has room to run.