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2013 Should Come in With a Bang


The market is set up for a big move, but seems to be waiting on the fiscal cliff resolution for directional guidance.


The currencies are still bothering me for the bear view, as I covered in the last update. I would also like to publish a fractal that's still open in the US dollar, before the key levels are crossed. Note this is simply an open possibility left by the market, based on the three-wave rally and (presently) three-wave decline. I am more inclined to favor dollar bears, as noted in the last update -- but a long-lasting chop zone can't be ruled out yet.

Click to enlarge

Finally, below is a chart that may be of considerable help in unlocking the market's intentions over the near-term. The chart is the Philadelphia Bank Index (INDEXDJX:BKX) and provides a nice framework to help project the next directional move.

Click to enlarge

In conclusion, the bears have pushed the market right to the edge, but have not yet tipped it over. I believe the market is waiting on the fiscal cliff resolution (or lack thereof) to reveal its hand -- so hopefully we'll have an answer in the next session or two, and the market has positioned itself for an extended directional move in the near future. In the meantime, I wish you and your family a prosperous New Year. Trade safe.

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