The USD bottom

The USD seems to have completed their correction and bottomed last Thursday/Friday. The rally off Friday's low looks strong. Will it continue and signify a change in trend ? Lets watch it closely over the next few weeks.

Both SPX and USD moved up on friday. For the past few months, both indexes had moved opposite of each other. So, which one is a headfake ? I tend to support a down-move in SPX for the next coming weeks/months. However, though I still believe we are peaking soon, I need to avoid the major pitfalls of a trader. That is, letting your emotions rule.

To be a successful trader, one must cast aside his bias on a specific direction. He must learn to look at both sides rationally and choose the path with the best probabilities till it is proven otherwise. Stops must be in place to prevent excessive losses if a trade goes against you. Failing to adhere to these, a trader will find himself losing control and letting his emotions rule over his head.

Back to the markets, the SPX has retraced 38% of the entire decline from 1576-666, stopping at 1018 last friday. While SPX and Dow both hit new highs, NASDAQ did not follow suit. A case of intermarket bearish divergence. In Asia, SSEC/HSI had retraced at least 50% or more. The minimum retracements for a B counter rally had been met. Will the markets continue higher into fall season ?