The dollar showed weakness today as US equities ran the shorts on vaporous hopes of bailouts for the banks.
Notice though that Bucko has not broken any serious support levels so it is too soon to send flowers. So far this is a normal consolidation in a parabolic short squeeze and flight to safety.
We took profits on our long positions today, and went slightly net short when the SP 500 futures hit our intraday target of 866. This rally has a lot of air in it, but this is a light week, with the US markets closing for the Thanksgiving holiday on Thursday.
We are far from a recovery, and will likely go back down and test those lows again, but first things first, and we may see more rally in US stock indices up to the 62% retracement levels.
“Blood and power intoxicate; they help to develop callousness and debauchery. The mind then becomes capable of the most abnormal cruelty, which it regards pleasure; the man and the citizen are swallowed up in the tyrant; and the return to human dignity, repentance, moral resurrection, becomes almost impossible."
Fyodor Dostoevsky, The House of the Dead