Although the dollar index ($USD) didn't quite get to 74.75 (or 73.58), there's positive divergence in its chart (below), and thus reason to think it can tag slightly lower to meet these Fibonacci-based targets while maintaining enough divergence to signal that it should rally well soon. Obviously the bigger question will be whether such a low, will be "the low" or merely a way-station along the dollar's journey to deeper levels. I'd like to think the former, but will see! Meantime, the corresponding negative divergence in equities (you can see in my SPX chart below) suggests we really are close to a significant turn. Tony Caldaro's update this evening (see his OEW site, and updates feed, at right) talks about some additional Fibonacci relationships around 1096/1097 - so we'll see on that too. Andre Gratian's subscribers are getting his updates to his weekend report too. For myself - I could see the wave pattern as being ready in both pattern and time ... but the swing trader in me must point out an obvious basic fact: since the low we pointed out at the 50 dma, there hasn't been a trigger day sell signal yet. So up is up until it isn't. We'll have to see if we get a trigger down day tomorrow; or if not then, we'll see when it comes. Can you believe opex is this Friday?!
Updating 10:32 pm with another interesting point: this most recent rise is about 60 points in SPX, and therefore about the same amount in price as the wave that rose from the August lows. On the hourly charts it's evident that 1070 now is important in the cash index. And with all the popular talk about Dow 10,000 one must wonder how guaranteed it is. Only thing, it might need a small diagonal flourish - we'll see if that's just wishful thinking.
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