The final piece of the puzzle is finally in place for the US dollar index!. It’s what we have been waiting for – a break below 76. This long awaited move gives a potentially complete 5 wave move down from the breakdown at 78.50 earlier this month. This is sigificant because it now means that all the elements are now in place for the US dollar to make a final bottom and reverse.
We have been discussing this potential for some time in our short term market reports, and with a US dollar www.trade-futures.com daily bullish sentiment index at historic lows of just 3% (only one other time has it been this low in the past 20 years!) and now most importantly a potentially completed 5 wave elliott wave pattern the odds are now firmly in favour of a major bottom in the dollar and a major top in the markets.
If you are so inclined, and you are holding any long positions in the markets it might now be a good time to talk with your financial advisors about switching to safety, such as to cash or to fixed interest because once this reversal gets started it might not stop for years……. in fact we have an intermediate target for the S&P500 of 350.
We might be wrong, but the historical data say this is unlikely……..
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