Hello everyone, hope you had a wonderful weekend and that you are ready for new market moves this week. As you know, it’s Thanksgiving week, so in the second half of this trading week we should expect a bit thinner trading conditions.
So far, we’re seeing some rebound on stocks after Friday’s comments, when Fed policymaker John Williams said that interest rates can still fall in the near term, and these “flip” in rate-cut expectations are pushing the market a bit higher during Asia and the European session.
Now, if stocks will really continue higher—which I think is very possible, at least for a solid rebound this week—then on the other hand the dollar could come lower. Looking at the wave structure on the dollar index, we can still see the index trading around that 100.35 to 100.50 resistance area at the upper side of the diagonal formation, so maybe wave five is coming to an end. And as said, it would be much easier for the dollar to sell off if stocks really resume higher away from that October 10th support that we’ve been tracking within these risk-off flows.
So as long as we trade away from that 6546 support on SP500, I think the dollar could come lower.
For more check out our webinar below
NEW US Single Stocks Service (And Its Free!!)
Get Elliott Wave US Single Stock Report for some big names and companies