This currency analysis took maybe 45 minutes. I took a look a the USD versus other currencies in 4 time frames and came up with my strongest current direction. Admittedly, a number of these are "Double bottom" calls. However, as everyone and their brother know, the SPX has moved inverse to the US dollar index of late. Once everyone knows of a correlation, be on the guard for an end to that correlation, but for now it does appear to be in play. My take? Short term relief for the dollar, dollar gets stronger, SPC goes down for 3 days...enough to get some burnt bears excited enough to place more capital at risk...
Also, keep in mind, I am pretty good at charts and chart reading, I have not got deeply in currency charts until this last month. I think they are similar to equities, but there are differences.
Interesting--appending this blog-- the following BB comments just came out.
http://www.scribd.com/doc/17701803/Bernanke-Explains-Crisis-to-Average-Americans-Market-Watch
Even w/ the ridiculous inflated auction?
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