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This 4 hour chart of the US Dollar is playing out just as I thought it would. Price has formed a bearish head & shoulders pattern with the right shoulder now descending to attempt a break of the neck line.. Meanwhile, the momentum indicator is simultaneously rolling over into the BEAR country of negative territory below the ZERO crossover.
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As best I can tell, the recent 3 week counter trend rally in the US Dollar is over. And by implication, the bottom in the stock market (at $SPX 1040) is in. As such, the cyclical bull of the stock market is kept alive now with a continuation of the higher high and higher low requirement. Sentiment is absolutely scared witless and that is perfect. TNA, time to rock and roll!
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Click on the chart to ENLARGE
Nov. 14 mid day
7 hours ago
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