KING FU***** DOLLAR.
This will determine the direction of pretty much everything. Whatever this does in the next couple weeks and into year end will matter.
You get the Dollar right and you will get a lot of things right. Let’s look at the chart.
The chart above shows the dollar top back in 2002 and the long downtrend into 2008.
After the dollar bottomed in 2008, it went sideways for 7 years and broke above the downtrend resistance at 85.
It then ripped to 100, pulled in, tested 100, pulled in more, and broke 100.
Now, 100 is such a bigly level for the dollar is for two reasons (2 sides of the coin):
- The Dollar just put in a Massive Bull Flag and is going to 120.
- the Dollar just hit the .618 retracement from the top to bottom and will fail breakout.
Personally I see the dollar stopping and collapsing due to the Fact that EVERYONE is bullish the dollar. I think I know of 6 people who are Bearish the dollar here.
Pick a Side. I believe we may get our answer before this week is over. (Either Way Stocks go higher in the Long Term)