Yesterday I reported the breakdown of the Euro. This morning, the US Dollar is staging a breakout, having reached an overnight high of 78.60 in the futures. It appears to be finding support at or above its cycle top support/resistance at 78.30, which is a sign of strength. This is typical of an Elliott third wave, which appears to be beginning.

This rally may continue through early-to-mid-December and it may be possible to see a cycle inversion (high instead of low) between Christmas and New Year’s day. My cycles studies suggest another probable inversion on its Primary Cycle window, which is January 21 through February 5, 2012. This corresponds nicely with the first Trading Cycle low expected at the same time.

The morning SPX futures have fallen to 1238.50 in early trading. Currently they are hovering near yesterday’s daytime low at 1244.00. It appears that the market is being bought at the support levels, but all indications are that support cannot hold much longer.

Good luck and good trading!

Regards,

Tony

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As a State Registered Investment Advisor, The Practical Investor (TPI) manages private client investment portfolios using a proprietary investment strategy created by Chief Investment Officer Tony Cherniawski. Throughout 2000-01, when many investors felt the pain of double digit market losses, TPI successfully navigated the choppy investment waters, creating a profit for our private investment clients. With a focus on preserving assets and capitalizing on opportunities, TPI clients benefited greatly from the TPI strategies, allowing them to stay on track with their life goals

Disclaimer: The content in this article is written for educational and informational purposes only. There is no offer or recommendation to buy or sell any security and no information contained here should be interpreted or construed as investment advice. Do you own due diligence as the information in this article is the opinion of Anthony M. Cherniawski and subject to change without notice.

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