As far as the stock market, the lifts are quite impressive as shown below. Second largest percentage gain on the Dow Jones Industrials – bear market rallies are indeed a wonder to behold.

Markets have been moving lockstep with the Euro / Japanese Yen (EUR/JPY) cross. The media reaction to the yen’s appreciation has reached a crescendo, and the foreign markets are showing signals of government intervention as mentioned in previous post with a -4% route. Also significant is the lack of fx flows after the equity markets have closed.

Markets are anticipating fed fund rate to be slashed tomorrow, just as the dollar signals that trend started in March 2008 could go into a consolidation sequence – an intraday wolfewave pattern signal shows on 5min chart.

Here is the monthly chart of the US dollar. Superimposed upon the lower left is today’s intraday action as recorded on a 5min chart. One of the beauties of wave structures is the symmetry at key junctures – compare the 3 days of intraday data against the equivalent topping action which unfolded over almost 2 years of monthly swings.