Yesterday I pointed out the 1-2-3 reversal in progress in the S&P. We also have the same pattern forming in the dollar.
With today's move down the dollar has put in another swing high. It's now set up to complete the pattern if it can close below the Nov. low.
I've marked the timing band for the weekly cycle low with the light blue box. If the dollar is completing a T1 pattern (explained in the weekend report) then we should see the buck move back down to test the consolidation zone between 76 & 80.
I suspect this move into the weekly cycle low will correspond to an intermediate term rally in stocks and commodities.
Market Direction Change
2 weeks ago