| Thursday, December 11, 2008 - New York Update - The
overnight session was packed with interest rate announcements with
cuts of 100 bps from Korea, 75 bps in Taiwan, and 50 bps in Swiss
signaling calm in overseas markets spurring US dollar selling. The
equity markets seem to be on hold however, with possible resistance
to the auto bailout bill ahead from the Senate.
The good news is both the sinuses and US Dollar range have broken
their recent consolidations in the last 18 hours. The depth of the
US dollar drop has actually invalidated both US dollar scenarios and
sent me back to the drawing board. If you think the market is tough
to track through the lens of Elliott in here, rest assured many
disciplines are getting mixed signals.
The possibility exists that this 32-day long consolidation is
still wave (IV) and we have wave (V) to new lows ahead of us. I am
watching equality between waves a and c at 1.3388,
along with .382 retracement at 1.3356. Considering we are trading
1.3391, I am very anxious to see if 1.3400 holds. Watching in here.
TG. |