Friday, June 22, 2012

SPX/FXA Analog Update

Similar to adapting the current tape to market cycle work or Elliot Wave Theory, fitting analogs - especially longer timeframe analogs - is a moving target. Here is a somewhat more compressed overlay of the SPX analog to the Australian Dollar. Interestingly, this is how I originally fit them in late May (see Here). 


From this perspective, yesterday's powerful sell-off will prove to be the last bear trap before the real blowoff commences. 


Food for thought.