The main USD rising channel since November has broken, and the first five wave sequence up in USD would therefore seem to be finished. I've marked the likely fib retracement targets on the chart, and have a provisional channel for the first wave down:
As for SPX, the melt-up of this wave 5 (or wave 3 extension) since the Feb 5th low continues. The latest wave channel looks likely to break up soon though we may well see another touch of the main lower channel trendline before that happens:
This USD top is significant though. There's now a distinct possibility that the likely abc correction in USD will bottom as this wave 5 up (or wave 3 extension) in equities tops. That's mixed as far as good news goes though, as that abc is likely to take us into May.
A bit of comic relief I'd like to share with everyone. A man pleaded guilty yesterday in Leicester (UK) to some extremely innapropriate relations with a donkey and a horse, and when his lawyer was asking for bail before sentencing he admitted that 'the defendant does not have a stable address'.
Click the donkey for the full story:
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