265th week, comments

Well it was quite a week for the markets. The Nasdaq Composite on the Daily charts had the Lagging Line Break the I-Cloud producing a 'Sell" signal. On the 60 minute charts Price went deep enough to damage the wave structure. It was a wave iv sub-wave that actually went to deep. The Intra-day waves on the Dow and SPX has held up so far.....But it will not take much more Downside for the Lagging Lines to break the Clouds triggering Sell signals. The Russell has already broken the Cloud triggering a Sell signal,but hasn't broken the pitchfork lines...Yet.

One thing to watch for is the Price rebounding after the Lagging Line Breaks the Cloud. Often it will retest the Bottom of the cloud or even the topside of the cloud. It doesn't turn Bullish again till after the conversion line crosses over the Base Line and the Lagging line goes back above the Top of the Cloud.

One Thing that was most  unexpected was the deep drop in the USD. It actually looks to be Bearish again,all but the Conversion line hasn't crossed the Base Line.The Weekly chart is most certainly Bearish with a target in the .77-ish Area. Remember what I commented on about the G-8 Meetings? Currency Flip-flops.