We broke the important pivot of 1083 today. We made our low at 1078, just barely breaking through 1080. We bounced sharply after, but came back down into the close. The waves are now getting very choppy. This indicates that we are close to the end of wave [i], if not already in wave [ii].
Our confirmation, in my opinion, of being in Minute wave [ii] will be breaking the downward channel shown on this chart.
It's hard to determine the break out price, since the channel is sloping downward, but basically break 1090 will do it. If we can manage to break out of that channel, our next big tests will be 1100, 1103 and 1105. Breaking these will probably get us up to 1115, which is roughly the 50% retracement of this move down.
Today's new low was some what of a surprise. But remember, during the rally we had so many new highs when we didn't expect them. So don't be surprised if we break 1078 tomorrow.
The US Dollar is now in a confirmed uptrend in terms of EW. Watch for the Dollar to explode higher once the SPX and Dow start moving lower.
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