Watch out when DJIA hits 7,000 - 7,500 . bottom buy opportunity

This week could be a major turning point for equity and commodity markets. The US DJIA has likely completed the wave “d” of the triangle formation and only needs one more leg up to complete wave “e”. This should then be followed by one more major down leg targeting the DJIA at 7,000-7,500pt, likely a major bottom. The Dollar Index (DXY Index) which has been trading sideways for the past three weeks in a triangle consolidation finally broke out last night, currently trading at 87pt this morning. Dollar Index should surpass the 90 levels soon. This could mean trouble for global equity markets as there has been a strong inverse relationship of the US$ and global equity markets since Mar this year. As such, it is not surprising crude oil below US$60/barrel last night, currently at US$58/barrel. It is likely that crude oil could fall towards the US$50/barrel levels before a major bottom sets in. We will provide more details on global equity and commodity markets in our next Alpha Edge end of this week.