We have another cluster of blue bars on the Elder impulse system chart, and one of these days it really is gong to indicate a trend change, but so far, not yet. Yesterday we got a bounce off the 20dema, which has been support since this rally began, and the rally will probably not end until it is broken. Today's lower high, so far, indicates that we may still be in for a pullback. I have the simple 50 and 200 daay moving averages today, and as you can see, the re-cross of the 50 above the 200 is imminent. As the cross below back in July marked a short term bottom, the cross above might mark a short term top, but that has yet to be seen.
The Nasdaq is in about the ame condition, and is just a hair closer in it's re-cross. This is weakening again, reinforcing the pullback thesis.
Crude oil flashed a sell signal yeterday, but did not follow through today. This has been slowly working it's way up, fighting lousy fundamentals (declining demand) with the ultimate weapon; a dropping dollar.
Gold also flashed a sell signal yesterday, and is still red today. If this follows it's recent history, it should pull into another base here, possibly retesting the prior breakout point at 1265.
The dollar took a pounding after a short bounce up, however, momentum still looks to be shifting upward. With everyone now trying to weaken their currency, this will be the least reliable indicator of the true strength of the dollar. Crude oil looks to be forming a bullish pattern, and could breakout out soon. Then we will see just how weak the dollar is becoming.
I will have the new highs update shortly.
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