View: USD INDEX: Follow Up of the Short Term EWP | The wave trading

It is obvious that the trend off the July 24 remains down.

Eventhough the internal structure of the sharp drop is not impulsive (Hence price has not established a major top) it is evident that price will unfold at least one more large down leg unfolding a Zig Zag.

This likely outcome substantially strengthen my scenario for SPX which calls for unfinished business to the upside within the wave (X) off the Novenber 2008 lows.

The corrective rebound from the September 14 low definately is warning that price will shortly resume the down trend.

If USD index bulls are able to extend the corrective bounce in progress towards the 200 d ma then we could have a potential Head & Shoulder wich has a theoretical target at 73.20

Regarding the internal structure of the move off the September 14 low in my opinion price is unfolding a Triple Zig Zag.

The Triple Zig Zag could be considered completed but if the equity indices (SPX) have not completed the corrective pattern from the September 14 high then price could still be involved in unfolding the las Zig Zag (Blue count).

If this is the case price should establish the bottom of a corrective wave (B) in the range 79.775 – 79.525