Thursday, September 15, 2011

The correction has been long but should finish today

Yesterday was partly a boring day – mostly in Forex – and partly interesting with the U.S. equities apparently defying ardent Elliott Wave guys who are frothing at the mouth waiting for doomsday to appear across the horizon. Having said that, there has been no final confirmation of a break higher yet in the latter and I don’t think that situation is going to be resolved this week.

However, I was quite happy to see that rally as it still provides a cushion for the expected follow-through higher in the Dollar. On that subject, for last night’s Mentor Service I was asked to demonstrate how to view a chart and how to know where to start a wave count. I haven’t really worked with the Dollar Index that much so used it as a live example of identifying a wave count. In looking at the decline from the 2007 high it became apparent that we have not seen a final low yet. What’s more, it does point to another push higher but quite limited.

So the coming week or two looks like being quite interesting as I do feel we shall be due a deeper correction after the anticipated coming rally so it will be interesting to see just how strong the reversal is. As you know, I have always had the preference for one more low in the Dollar so we’ll have to wait and see. At least it will be an improvement over the past two days.

So what for today? I think one more dip in this Dollar correction lower and then we should see some firmer gains again. Keep your eyes peeled for the reversal which should initially move back to the recent highs. That should help EURJPY continue its safari into the black hole…

Good luck
Ian Copsey


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