Have been asked by some blog readers to give a concise summary of what I see ahead. When DOW/S&P500 etc. overdue correction commences, I expect: UP: US Dollar and various USDXXX currencies DOWN: EURUSD, AUDUSD, NZDUSD, Base metals like COPPER, CRUDE OIL, GOLD/SILVER
I posted a link in the other thread: http://www.elitetrader.com/vb/showthread.php?s=&postid=3093186#post3093186 Timing is impossible to determine but the levels appear clear from the charts.
AUDJPY weekly chart reveals whatâs been happening since the crash and the ârecoveryâ. The smaller wedge that starts mid 2010 reveals a weakening trend despite the QE intervention. This chart should not be ignored in my view.
USD buying support / EURUSD selling pressure returns today. Thus we return to the recurring pattern as the dollar continues to wind up for a rally. Key global equity indexes remain very overextended and as a result the overdue correction may be sudden. A reminder that the volume for S&P500 has been declining steadily since the March 2009 rally started. Declining volume during an uptrend or downtrend can signal trend weakness.