Into the Weekend

Options expiration gave us some volatility in the morning but it has since faded.  I don't expect much action the rest of this Friday but so far only the Dow has made a new high.  As I said yesterday, a new high in the Dow would gives us a "restart" on trying to get an impulsive decline which it had yet to achieve while the Nasdaqs and S&P appeared to already be in impulsive declines.  We got that today and the S&P and Nasdaqs haven't followed.  So this divergence remains in place, and a turn down from near current levels could be extremely bearish.  But we'll probably have to wait until next week to see if that happens.

As for the euro, it has rallied again and it appears it may be entering a blow-off type top.  It's still overbought and a bit choppy, so I'm not bullish the euro, and the US dollar is looking strong against other currencies so I'm still not convinced the euro will soar much higher.  But until we get some bearish action in the euro. a charge toward 1.4300 cannot be ruled out since the decline from that level could be counted as a 3 wave move.  The AUD/USD however is still weak and sports a clear and full EWP structure and doesn't appear to be flipping bullish anytime soon.  So it's a mixed picture here and we need to wait to find out which one of these gives way and follows the other unison like they usually do.  So I'm still cautiously bullish the US dollar, bearish the Australian dollar, but the euro worries me a little.  Have a good weekend!

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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.