The bearish counts are now in play. We sold off pretty hard today, which is what the bearish counts called for. Internals supported the down move, and so did volume. We also had confirmation with the European markets selling off, as well as a down move in the EURO and a very bullish day in the USD.
This expected sell off is a possible subminuette wave iii. The minimum target has been met, so it is possible it could have ended today.
However, if wave iii is going to extend, we could get a further push down tomorrow. So for now, we'll wait and see what happens. If we chop around sideways tomorrow, it could indicate that wave iii has ended and that we are in wave iv. I expect wave iv to be sideways since wave ii was sharp.
The alternate bullish count is that this move is an a-b-c down and we push higher tomorrow in a new uptrend. 1187 is a key pivot to the upside now. To the downside, the key pivot is 1165, like I talked about in my video over the weekend. We came close to it today, by making our low at 1168. Breaking 1165 could mean a possible move down towards 1150.
The daily charts also seem to be rolling over.
1150 is the next major daily pivot.
The US Dollar had a very powerful up move today. As I posted last week, there could be a possible inverse head and shoulders on the USD.
The target is currently around 84, about .50 from where we are currently.
Google also broke 520 today.
The next pivot is 500.
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