Too right Wizard. LOL! Ninja, I reckon it all hinges on the USD Index. It has had a massive bull run since middle July 08 (71.7) all the way to 28 Oct 08 (88.4). At that point it started going sideways in a range of 84 to 89. If Joe Russo's Elliot Wave analysis plays out then you are going to see the biggest bear run on the USD of all time. The very first chart I check every day is the USD Index at the moment as I believe that's where the lead signal is going to come from. The levels to watch are 83.75 (daily low on 30 Oct and range low), 80.39 (critical level and the daily high of 9/11) and 76.02 (daily low on 9/22). Finally 71.7 is the last support. After that the USD can well drop to the 40's. Note though that the USD Index is read over days and months (shorter time frames are not really useful) and while the monthly chart is way overbought, the daily chart is neutral RSI14 and almost oversold Stoch14. Short term (next 1 to 2 months) the USD will probably still move up to touch 90.02 but medium term within the next 6 months it's going to get the ***** slap of all time. And then, I reckon XAU is going to go through the roof (Note I say Gold and not neccessarily Gold shares). The question begs whether it will rally markets? The way the Yanks are printing money guarantees currency devaluation over time. The big question is against which currencies? I mean, the major crosses all have their own problems which don't exactly make a case for them appreciating viz a viz the USD? Anyway, I'm keeping it simple and sticking to the TA on the USD Index. It will tell us soon enough where it's going and until it resolves it's consolidation and confirms a direction I'm not taking a view
