A sharp fall to 1783 on Friday suggests that the S&P 500 is heading lower now in wave 4. Wave 4 is a corrective leg, so this can be only a temporary weakness but we still need three legs down before we turn bullish again.
The Australian dollar reversed unexpectedly to the downside against the U.S. dollar in the last few weeks and is now trading very close to yearly lows. As such, we are now tracking a new wave count as current bearish price action is quite strong.
The U.S. Dollar Index has been slow, choppy and overlapping within two contracting trendlines for the last few years, which we think represents a triangle pattern, most likely placed in wave B) position.