As an old futures trader I am always on the lookout for gaps.
I just spotted one. Here's a simple article explaining the gap. This is not a continuation gap, this is an exhaustion gap.
The Euro, Oil, Gold, and on the downside, the dollar.
The disparity and push against all odds has caused a universal oversold position in the dollar against all other players.
Don't get me wrong, the dollar has declined against other benchmarks, but the 1.41 dollars to the Euro has all the earmarks of an exhaustion gap, a top that is just touched but tenuous and due to collapse.
The others will follow.
Talk about irrational exuberance. It is on the other side.
So, in the next few weeks you will see some return to sanity. The press won't tell you. I just did.
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