DXY - Monthly Linear Mode
There's a lot going on here. Bear with me.
I've used the 3 major pivot points along with pitchforks median lines from the past 37 years.
As you can see we have reached a point of confluence of no fewer than 5 intersecting lines derived from the afore mentioned pivot points.
My opinion is that the advance from the 2008 low is corrective in nature and represents a "C" wave.
This suggests the next move is lower and in this case that would suggest it takes out the 2008 low. Keep in mind this is a monthly chart so this could possibly take a decade to unfold. The interesting point is related to the fact that this unraveling would bring the dollar back down to the point where the Fed initiated their QE tinkering.
What goes around comes around...you can't escape that fact.
This will take time. The early part of this presupposed dollar decline may be viewed as a good thing. Markets will probably advance since the dollar advance has been associated with the sell off in the stock market. When the dollar decline gets real I suspect that is when the stock market will move into the decline most have been looking for. At this point it's impossible to know if the tail will be wagging the dog or vice versa.
If this transpires as proposed it would fit into my thoughts on where the stock market is currently positioned from an Elliot Wave perspective. See my "Free Market @ Work" publication. I think the coincidence in market position for the US Dollar and the stock market is more than random. This will affect many markets... stocks, bonds, currencies, commodities, crypto etc. Should make for some lively trading. Hang on for the ride!
There's a lot going on here. Bear with me.
I've used the 3 major pivot points along with pitchforks median lines from the past 37 years.
As you can see we have reached a point of confluence of no fewer than 5 intersecting lines derived from the afore mentioned pivot points.
My opinion is that the advance from the 2008 low is corrective in nature and represents a "C" wave.
This suggests the next move is lower and in this case that would suggest it takes out the 2008 low. Keep in mind this is a monthly chart so this could possibly take a decade to unfold. The interesting point is related to the fact that this unraveling would bring the dollar back down to the point where the Fed initiated their QE tinkering.
What goes around comes around...you can't escape that fact.
This will take time. The early part of this presupposed dollar decline may be viewed as a good thing. Markets will probably advance since the dollar advance has been associated with the sell off in the stock market. When the dollar decline gets real I suspect that is when the stock market will move into the decline most have been looking for. At this point it's impossible to know if the tail will be wagging the dog or vice versa.
If this transpires as proposed it would fit into my thoughts on where the stock market is currently positioned from an Elliot Wave perspective. See my "Free Market @ Work" publication. I think the coincidence in market position for the US Dollar and the stock market is more than random. This will affect many markets... stocks, bonds, currencies, commodities, crypto etc. Should make for some lively trading. Hang on for the ride!
