The market place is at one of those junctures where time is now the most important indicator for all markets. As Gann says "TIME" is always the most important indicator to all others. Not an exact quote but ultimately that is what he meant. Stock Indexes have completed 99% of possible retracement of the bear market decline. Currencies are also at a specific juncture where we could see a temporary retracement of the primary trend of the US$. The US$ is in a powerful bull market that has surprised many people however many wave counters such as myself, new that an impeding reversal was about to come. Psychology on the US$ was at extreme bearishness in November and December of 2009, but now we see the opposite sentiment. Thus, over the next week or 2 we should see a temporary and short lived reversal of the US$ strength. Therefore Euro and Yen strength could emerge, since they make up a good % of the US% index. This strength will be temporary and may only last 2 to 4 weeks. The next leg up in the US$ will be significant and may drive the Euro down to 1.20 or lower.
I will be posting a few charts over the next day or 2 to show you what I am seeing.
S&P E-MINI WEEKLY CHART
GBPUSD
Remember this is just “One Man’s Opinion”
Cable Chart the target hit. Looking for more downside as UK Hung Parliment. OMO Tories and Lib Dem deal will not work. Lib Dem and Labour will work as they more closely alighed. This relationship not optimal has the finacial sector will view this as negative. The is a high chance that another election will be called in the Autumn, time will tell. But in the meantime this will be cable negative.
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