fragile friday, page-53

Like NineLives I was confused by the US dollar index fall. Seems to have been a switch back into the Euro rather than "sell dollar, buy equities."

In good times, a strong economy equates to a strong currency. But in panic times, a strong currency is merely a safe haven to store the loot.

Many majors here now oversold, but of course they can stay that way indefinitely. However, I would rather have oversold than at overbought!

Re the mining super tax---I can see no evidence that the original proposal affected the market in the first place, so I would not rely on today's changes to have any affect either.

Here's the SPX daily....possible scenarios: the yellow trendline suggests it's hit the bottom and is in for a rally....while the blue channel suggests a further fall to the high 900's.