Widening wedge, looking like its going to go long. Risk is eye watering, a spike in the dollar follows the natural cycle of things in my mind for a correction or the start of a bear market.
Thoughts?
JG
Comment:
As the DXY approaches the lower trend line of the widening wedge I suspect it might fail to complete before rebounding to the top of the wedge.
Basically, I see the DXY going lower for a bit before we see spike leading to a sell off in other assets. Therefore, I think this still holds and we will see the DXY approach 90.5 while the SPY will approach 420 before correction into bear market cycle.
If for some reason we see the DXY fall below the 90.5 and breakout to the downside I see other asset classes continuing to appreciate in price with SPY heading to an eye watering 452. However, with what all is going on in the world geopolitically I do not think that is a likely scenario. Nevertheless, I've been wrong before and will be again I'm sure. Interesting Times we are in.
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Basically, I see the DXY going lower for a bit before we see spike leading to a sell off in other assets. Therefore, I think this still holds and we will see the DXY approach 90.5 while the SPY will approach 420 before correction into bear market cycle.
If for some reason we see the DXY fall below the 90.5 and breakout to the downside I see other asset classes continuing to appreciate in price with SPY heading to an eye watering 452. However, with what all is going on in the world geopolitically I do not think that is a likely scenario. Nevertheless, I've been wrong before and will be again I'm sure. Interesting Times we are in.