It's true, the negative divergence in the market was long and was very deep (which doesn't bode well for the future of the market). In looking at charts, confirmation is important and I brought the dollar up several times. I hope we didn't forget about it or fail to realize the importance of what we were seeing. Remember, the market and most commodities have an inverse correlation to the $USD, meaning a strong dollar means a weak market and thus the Global currency race to the bottom to protect each countries markets, just like Japan Sunday night.
This is the bullish descending wedge in price I pointed out in the US Dollar Index (50% of the Index is weighted by the Euro as the single most important currency in the basket). There was also a leading positive 3C divergence, this essentially is a very big warning of very bad things to come (barring interventionist policies that are effective).
The current formation is almost a twin of the 2009 formation which rallied 20%, but didn't have the same disastrous effect on the market due to ongoing POMO and other "FAD" intervention. With the current correlations in place, this is a grim warning.
Intraday UUP 15 min has seen a very big positive leading divergence and wouldn't you know it, the last thing it did was break support and hit new lows in a head fake before launching up.
The 30 min chart is hugely leading positive.
This is more of a macro picture, but an ugly one.
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