The following chart supports this view:
If this pattern (some kind of a double bottom followed by a strong rally) continues to happen we should see a gap up tomorrow.
Looking at the past days, the decline from 1119 to 1086 looks a bit like a diagonal. But unfortunately this doesn't really help because it can either be a bullish ending diagonal or a bearish leading diagonal (only FED knows which one's the correct one : )).
Primary count: in (c) of [v] (last up wave)
Alternative count: already topped at 1119 (confirmation below 1029)
EUR/USD: The EUR/USD completed five waves down and is now in a corrective wave (ii), which might correct all the way up to the 62% retracement level.
A weaker dollar (rising EUR/USD) in the next few days would also support my SPX count suggesting a rally in the stock markets as I don't expect that the correlation will suddenly stop today or tomorrow.
Primary count: the Dollar bottomed (EUR/USD topped) in November and finished its first wave up (down)
