(Click on the picture to enlarge)Minor wave iii is well under way, as can be seen the break below 162.74 also triggered a minor Shoulder/Head/Shoulder top which has a target just below 155.00.
The main picture I have been working with since the early part of August, that the US-dollar has bottomed for now, seems to be working out well. I will admit, that it has been a very slow start, but this scenario looks more and more convincing.
The stronger dollar will add to pressure on the stock indicies, which might see one more minor rally. I do see the possibility for the Dow Jones Industrial index to reach the 9.676 area and S&P 500 might test closer to 1,048, but I would not trade the long side under any circumstance at this time, risks is just to big.
Cash for Clunkers did wonders for the Durable Goods figures, but strip the figure for transportation and the figure couldn't be much worse...
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