Rising Wedge on Quarterly SPX vs. Reversal signal on DXY
SPX is showing a strong rising wedge.
This is a quarterly chart so the trends are very neat and tidy.
Meanwhile, DXY is showing signs of bottoming.
It's my view, that we are set for a burst of dollar strength which will provide pressure upon equities and break the wedge to the downside.
There is a trend of descending lows which has been in place since 2018 on SPX (B).
So I think downside potential is far greater than people are realistically pricing for.
That's all. Happy trading everyone.
This is a quarterly chart so the trends are very neat and tidy.
Meanwhile, DXY is showing signs of bottoming.
It's my view, that we are set for a burst of dollar strength which will provide pressure upon equities and break the wedge to the downside.
There is a trend of descending lows which has been in place since 2018 on SPX (B).
So I think downside potential is far greater than people are realistically pricing for.
That's all. Happy trading everyone.