Above is the USD/JPY which has been tracking the stock market lately since it's tied to the risk trade. It appears to be declining impulsively from its high as you can see. So this is something to watch because it may be telling us that the trend has turned down in the stock market as well. But still, we need some confirmation.
I'm watching the Dow 10,000 level since the market continues to bounce from this level and is actually sitting right on it as I write this. A strong break below 10,000, and especially a strong close beneath it today, along with the S&P breaking below 1070 will be a good indication that wave (ii) might be over. The market has been wild lately and has faked out the bears a few times lately, so I still want to see 10,000 wiped away, and the series of higher lows in the S&P be taken out with a move below 1070 before I start really thinking wave (ii) has ended.
PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.
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