The dollar bottomed and reversed later in the trading day which coincided nicely with my 2nd count posted earlier that had the decline from last night as a wave (ii). The dollar just rallied in 5 waves (see above 20min USD/CHF chart and count) which suggests the trend has returned to UP. If so, it should be in a wave 3 at multiple degree which means lots of strength and rallying like a rocket. This would also imply that the stock market is at the verge of the next round of selling.
NYSE internals have flipped to solidly negative while the Russell and Nasdaqs are leading the decline. This following great economic news and a 140 point Dow rally completely reversed is all extremely bearish for the stock market along with the bullish implications for the dollar.
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