1:06 pm PST. I learned a lot from last Friday and today. Very interesting gap down this morning after Friday’s bounce. Trump pulling the bill really distorted the magnitude of the bounce, but it was just short-term and indeed the indices intended to make a new low in accordance with the pattern which is where I thought it would go, but got shaken out by an unexpectedly stronger bounce last Friday into the close. This is something very new and interesting that I learned today: News can distort the price pattern for a short-term but not the general pattern and trend to where prices ultimately intend to go.

Likewise the dollar finally made its spike down today while the EURO finally did its spike higher. They sure did take their sweet time. I think I was early in looking for it. The currency markets move a little more slowly than the indices and this is another new thing that I learned.  🙂 They certainly have their own personalities. I think UUP, though, still looks like another possible new low tomorrow on positive divergence, and that is probably it for the interim. I am looking for 25.45 tomorrow.

I really like how the indices recovered today filling the gap. I think there could be some chop in the morning tomorrow as the dollar makes its final low, and then SPY could rally to 236 over the next week or so.

FCX broke down from that triangle as USO also sold off this morning.