Thursday, November 12, 2009


An interesting development just occured on the dollar chart. Yesterday the dollar broke to marginal new lows and then reversed. Today we saw strong follow through. This is often how significant lows are put in.

I think we need to watch that all important 76 support level. If it is recovered then there's a very good chance the dollar is going to rally for at least 4-5 weeks. We all know that if that happens stocks are going to suffer an intermediate decline. Probably more severe than what we just went through.