Late in 2009 I was trying to relate a potential selloff to the action in the Yen. As it turned out I was off on my correlation since the Euro has proved to be the controlling currency. However, now that the relationship is obvious, we can see that an important low in the Euro is near. Friday's decline came as a breakdown out of a bearish descending triangle. Triangles always precede the final motive wave of a movement. This triangle targets 117.84 for a low which could easily be seen on Monday. This analysis supports the view that the 5/25 low is an important low. The overall pattern in the Euro suggests that we may see one more 4th and 5th wave down in a few weeks. This may complete a large ABC correction in the Euro. If so, it may be pointing to an early end to the stock market correction in 2010 in contrast to predictions by many for the resurgence of a bear market.
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