Dow Jones Industrial Average: -49.05 or 0.47% at 10452.00
S&P 500 Index: -6.18 or 0.55% at 1107.93
NASDAQ Composite Index: -11.05 or 0.50% at 2201.05
NYSE Internals: 1216 Advance. 1824 Decline.
US Dollar: +0.565(0.74%) at 77.300 | Crude Oil: +1.24(1.24%) at 70.75
Gold: +1.60(0.15%) at 1125.1 | VIX: +0.64(2.05%) at 21.79
Markets slip as US Dollar rallies after economic data.
The Nasdaq was the only major index to make a new high today, but only by 3 points. The SPX and Dow came close, but did not violate. As I have said in the past, the disconnect between the 3 indices is pretty noticable. They don't seem to "travel" together anymore.
Regargless, the bearish wave count I posted last week, may still be in play. If we count wave [ii] as a complex 3-3-5 zigzag, instead of the usual 5-3-5 zigzag, it works great.
If this count is in play, there is only one thing to look for. Tomorrow has to be down. The icing on top would be if we can break 1100 and 1095. If we aren't down tomorrow, it may nullify the count, and forcing us to go back to the drawing board. Also, a break back above 1110 could nullify the count. If we break 1110, then the bulls may be back in charge and could run us back to the highs.
The only bullish thing for the markets right now is that the dollar may need a slight pullback. As you can see from this chart, the US Dollar is clearly impulsing up. But it looks like Minor wave 1 may be coming to an end. If the US Dollar is to pullback in a Minor wave 2, the Equity market may continue to bounce just a little. Either way, an uptrending dollar is not good for equities. If the dollar comfirms its Primary Wave 3 up, it's most likely game over for the stock market. :)
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