Elliott Wave - CRB Index (Weekly) - 2 Dec 10

     Continuing with the CRB Index ... The weekly chart shows a Leading Diagonal pattern from the February 2009 low up to the January 2008 high. This is either wave '1' of an impulse pattern or wave 'A' of a zigzag.
      The index then corrected in an 'A-B-C' to the May 2010 low. This decline held at the 50% fibonacci retracement level and is either wave '2' of a larger impulse or wave 'B' of a larger zigzag.
     The rally from May 2010 is not yet complete with the next target level at 322-324. I will examine this rally using the daily chart in my next posting.

Elliott Wave - CRB Index (Monthly) - 1 Dec 10

Today begins a series on the Commodity Research Bureau (CRB) Index. After the huge decline from July 2008 to February 2009, the index has recovered in (so far) three waves. The next logical target is just above the market at the TD Trend Factor (purple line) level of 325.74. A fibonacci level is also in this area. Tomorrow I will take a closer look at the move up from May 2010 using a weekly chart.

Elliott Wave - Dollar Index (Daily) - 30 Nov 10

Bottom line: The daily dollar chart is bullish even if a substantial pullback were to occur soon (TDST support is well below the market).

Elliott Wave - Dollar Index (Daily) - 29 Nov 10

     This post continues a brief series on the U.S. Dollar Index. The question asked yesterday was whether an elliott wave Flat pattern ended at the November 2010 low. It certainly looks like it did. I can count a five wave impulse pattern for wave 'C' of the Flat and there was bullish divergence in the RSI Index at the low.
     The implication is that a new upward moving wave pattern began at the November 10 low. I will conclude this series tomorrow by looking at that action.

Elliott Wave - Dollar Index (Weekly) - 26 Nov 10

As mentioned in the last posting, the U.S. Dollar Index made a five wave move to the upside beginning in March 2008. That impulse pattern is either wave '1' of a larger impulse or wave 'A' of a larger zigzag. Since the correction from the high has been so long and deep I favor the larger impulse scenario, which implies the action from the March 2009 high has been wave '2'. So far the correction appears to be playing out as a Flat. Waves 'A' and 'B' are complete. Is wave 'C'? I will look at that using a daily chart next.