Support the Wall Street Examiner! Choose your level of support to receive a free proprietary report as my thanks. Click the button below to see your options. Become a Patron!

SPX, NASCRACK, RUT, and USD Updates: This Rally Was No Surprise…

A quick reminder: if you haven’t met the requirements for registration at the new forum, your account will, unfortunately (or maybe fortunately, lol) not be approved.  Please read this thread carefully when registering.  Thanks!

Alright, sleep is becoming a thing of the past for me, and exhaustion a thing of the present.  So this update I’m actually going to keep short, unlike yesterday’s failed attempt at brevity.  I spent a fair amount of time on the charts, so hopefully they’re self-explanatory.

Liquidity moves markets!

Follow the money. Find the profits! 

It appears that the preferred count of Friday and Monday was a dead-on hit, and that we’re now most likely in blue wave (4).  There are more bullish potentials — so as always, I would caution against any temptation toward complacency. 

This rally wave currently has an a-b-c appearance, and could be nearly complete.  However, fourth waves are known to frequently string together several fractals, so another up/down sequence wouldn’t be out of the question.

Most notable levels are discussed on the chart, and bears should definitely be cautious in event of any breakouts above the red trendline.

The Nasdaq appears to have further to fall.

The next chart simply examines the trendchannels on RUT.

The last chart I want to call attention to is the US Dollar.  If you went long the dollar near the red trendline, as I strongly hinted was a solid play (on several occasions), then you are now in profit of $2200-2400 per DX contract.  Dollar has currently run into some expected resistance at the a-wave high.  A further correction here would not be out of the quesion, but once it breaks out above the a-wave high, it should be relatively smooth sailing to the targets.

In conclusion, it doesn’t yet appear that the final lows for this wave are in place, and a trip into the mid-1200’s still appears likely before it’s completed.  Trade safe.

Try Lee Adler's Technical Trader risk free for 90 days! Follow the money. Find the profits!

  2 comments for “SPX, NASCRACK, RUT, and USD Updates: This Rally Was No Surprise…

  1. May 22, 2012 at 11:30 am

    I HAVE BEEN TRYING TO REGISTER FOR THE FORUMS AND IT SAYS I HAVE SAME INFO AS A SPAMMER. THAT IS NOT ME. I AM A MEMBER OF THE PROFESSIONAL EDITION WITH LEE ADLER. I HAVE SENT YOU COMPLIMENTARY E-MAILS IN THE PAST AND WOULD LIKE TO JOIN THE FORUM. I REGISTERED WITH USER OF PAT

  2. May 22, 2012 at 9:10 pm

    Pat, you are in the wrong place. We just syndicate Jason’s posts here. You have to go to his site.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.