Market Analysis for Nov 22nd, 2004

Now that the E-SPZ has popped to a marginal new intraday high at 1172.25, which my work argues is part of a messy counter-trend rally effort off of this AM's low at 1166.50, have a look at the Euro chart, which shows the continued powerful uptrend.... Under the circumstances, however, given all of the noise over the weekend about Greenspan's comments about the twin U.S. deficits (which he helped create with VERY easy money policy), and the lack of any meaningful statement out of the G-20 or APEC meetings... the Euro is not exactly running away to the upside... all the more reason for caution for dollar bears...

By the way, lack of upside acceleration in the E-SPZ from 1172.00 followed by a break back below 1169.50 will confirm that the counter-trend upmove is over, and that the next decline has commenced...

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