Futures

 ES intraday

NQ (NASDAQ 100 Futures) intraday

TF (R2K Futures) Intraday- you already saw the longer term futures trend this morning. What could cause such an ugly trend and account for some of the other strange events such as broken correlations, a real market working like a real market with real supply and demand, the charts from last night in VXX, HYG and TLT and the sheer desperation this week?

Earlier I mentioned that I had not considered it before because the $USDX did not react as expected, that doesn't mean the signal is wrong. The new low for the week is also important as you'll see.

On a long term 60 min chart this is the "W" base/bottom I have been pointing to in the $USD. Last time I had a REALLY strong positive divergence in the $USD, there was absolutely no reason to suspect the $USD had any reason to go up, but the divergence was strong and we went with it. A month after it popped to the upside, the US/F_E_D announce their intention to put in place a strong dollar policy and we caught on of the biggest moves up in the $USD in a long time.

This base is 10x the size of that accumulation pattern, a "W"  base with a head fake new low at the second low as expected and in yellow the pullback that has coincided with the TLT/Treasury pullback and has the same effect, it creates a positive environment for the stock market, in this time we saw several new SPX highs and DOW, but this VERY typical pullback at this stage of a "W" base doesn't last forever.

Whether the base started for real at the beginning of the "W", it caught accumulation at the September lows when QE3 was announced, THIS WAS THE SAME TIME I SAID, "THE F_E_D IS STARTING TO SET THE STAGE TO BACK OUT OFQE AND ACCOMMODATIVE POLICY" and every thing we have heard and seen since has only made that case stronger. Smart money can work 4 years in front of an event-Housing, look at the last AMZN update, so accumulating the $USD in anticipation of the end of Accommodative Policy on this scale is not at all strange. QE s sent the $USD lower, the end of QE should do what? 

This pattern shows the $USDX could stand to move to $90+