The price action in stocks was strong today but internally it was a weak move. The recent rally has been relentless in price, yet volume and advancers vs decliners has weakened. The rally looks corrective and the next big sustained move should be down. We just have to wait.
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The limits of the triangle interpretation above are being pressed with today's big rally. Wave ((c)) cannot go above the top of wave ((a)). Doing so would negate the triangle count and create some concern for the bears from an EWP standpoint. But as I said earlier, with internal strength declining as the rally chugs on, the market's larger downtrend appears to still be intact regardless. Wave ((d)) down should start almost immediately.
The 1.4000 appears to be in the euro's sights at this time. Although the euro's rally the past few days has been choppy suggesting it's a correction, it has held its series of higher highs and higher lows. So the short term trend remains up. Until that uptrend is broken, look for the euro to get to the 1.4000 level. I expect firm resistance at that level and believe it will mark a breat area for it to reverse and continue its larger downtrend.
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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.