Market Indexes: Marginal New Highs for DJIA, SP500, ES, NQ, not RUT today
The U.S. Dollar Index took another leg lower on the FED's FOMC statement today and solidly broke it's prior 1.618 Fibonacci extension. The Dollar's (DX) chart is below. While there could be back-and-filling, there is not a level of double Fibonacci confluence until 92.147, and with the slow stochastic still embedded, there is 'currently' nothing bullish on the chart. A key reversal bar would be a start, but is not to be seen.
|Daily US Dollar Index (DX) - Double Fibonacci Confluence at 92.147|
With the new daily high on the DJIA, the trend lines have changed again - back to the original contracting diagonal we were counting.
|DJIA Cash - 4 Hr Chart - Diagonal|
The new trend lines would we drawn between waves (ii) and waves (iv), if wave (iv) occurs properly.
Many market commentators today noted the new low on the $VIX. However, just keep in mind the daily $VIX did have a key reversal bar today by the time the cash market closed. The key thing to keep in mind while the market continues to wedge is that most of the increase in prices is due to the Dollar, not due to solid economic growth.
Be good. Be flexible and patient. And have a good start to your evening.