Monday, After the Close!!!

This is the Dollar chart with a new sell signal being triggered this morning, I am still leaning towards the price movements over the last month as being part of a "B" or "X" wave with higher highs to come after this correction wraps up. Upside resistance remains the previous high of $81.525 and support is from the previous low at $79.145. I did add the STO indicator to illustrate the short-term over-bought conditions the Dollar was in this morning.

This was a little surprising that the VIX never filled this morning's gap although the indexes ended the day in the green. The 20 day MA which is also the median line in this set of Bollinger bands is the next spot of resistance the VIX needs to break thru if it wants to continue this mornings bullish move. Having this open gap left unfilled really ups the odds that the VIX will sooner or later reverse back down to get it filled. The RSI and the STO indicators are now on a buy.

The SPX sold off at the open, but it has been clearly a corrective move down from the top that was put in last Wednesday opening the door to another series of 3-4's. This whole rally has been rattled with these new 3-4's combos popping-up that do not have a decent set of 1-2's to support them. This current 4th wave should drag on thru most of the week before heading higher in the, hopefully, final 5th wave at the beginning of January. This sideways movement will help to relieve some of the over-bought conditions on the short-term charts clearing the way for that next wave up.
Breadth close the day at 1.25:1, advancers, typical of a 4th wave, and volume was extremely low, coming in at only 466M shares traded on the NYSE. The trend does remain up until the SPX can start printing lower lows, with the first minor low at 1246.70 and the first major low at 1232.85. On the upside, there is not much in the way for resistance at this point.
The Trend Finder II did have some important changes today, although the new signals are weak.
I am going to try something new today, if you would like a daily chart of a favorite stock or index, please Contact me with the ticker, and I will e-mail you back an updated chart this afternoon with the buy/sell signals on it.
Robert Prechter Dispels 10 Popular Investment Myths, Part VIII