Yesterday the “Power of the Pattern” suggested to keep a very close eye on the Dollar, as it was testing support in the “Cup & Handle” pattern (see post here)
Below is an update on the Dollars overnight and early morning action.
CLICK ON CHART TO ENLARGE
The day is very early and could swiftly change…. so far this morning the Dollar has created a rather bullish wick at key support levels! At the same time this key currency action is taking place the rally in the 500 yesterday did nothing more than push it closer to falling resistance, at the top of its falling channel and the VIX index might be forming bullish falling wedge during its decline of late.
The Boy Scout motto is to “Be Prepared.” Should the Dollar hold at support/top of the cup and start pushing higher at this juncture, the pattern in the 500 and VIX would suggest this is a very good time to “Be Prepared” for large price movements in the near future!
Sabir….Thank you for your viewership and kind words.
I am very blessed to have great people like you and others all around the world as regular viewers.
All the best to you and everyone during the upcoming Holidays and I will do my best to help investors in 2012 and years to come… “to enlarge portfolios regardless of market direction.
Chris
Hi Chris!
Writing in from India… LOVE your work and analysis…Thanks a Ton!!
Hope the New year brings you Success, Happiness and Good Times both personally and professionally! 🙂
Sabir
Agree – I like that, “clean and crisp”. Thanks for all your help this year Chris.
Merry Christmas and Happy New Year!
Greg
Chris – what a nice 3-pack of charts…clean and crisp and if I needed 3 and only 3 things to sum up a market world view, those would be the ones right now.
And then, pop, back up! Keeping us on our toes!
Thank you so much for keeping us updated on this.