Slope of Hope Blog Posts
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We are still hearing an abundance of calls for the death to the US Dollar, which have amazingly continued during this entire rally from 2011 – which we called for back then. But, the dollar has given no indications that it has even been afflicted with an ailment, so the dire prognosis is quite surprising to me.
Rather, we have been in a long 4th wave consolidation, and set up to head higher quite imminently, as we have been suggesting for the last few weeks. Anyone following fundamentals or who has bought into the perceived power of the Fed over the dollar has completely missed this rally since 2011, but Elliott Wave analysis has provided the true clues to this market.
I wanted to offer up a simple metaphor for where I think the market is by way of a traffic light. In each of the five charts below:
+ the green tint represents the level which, should the price drop beneath it, meaningful weakness in the market is affirmed;
+ the yellow tint represents the level which, should the price go above it, further weakens the bear case (which has already been weakened by staggering market strength);
+ the red (OK, magenta) tint represents the level which, should the price go above it, means the bears are pretty much screwed once more.
So here we have the Dow Jones Composite: