DXY – NYBOT Dollar Index (Last:75.28)

I didn’t look at the dollar earlier tonight because I had assumed it would be dead-cat bouncing off the 75.45 pivot that worked so well earlier in the day. Lo, it’s 1:23 a.m., and DXY is doing a zombie-walk toward the edge of a cliff. We all knew that Bernanke, Geithner and friends had ceased to even pretend that they want the dollar higher.  Not that they don’t — only that merely saying so no longer triggers even a heartbeat, much less the kind of rally that could panic shorts. The powers that be evidently have decided that it’s better for the dollar to take its course than for the central bankers to be perceived as powerless to do anything about it.  Nor would our ostensible allies have their hearts in it if they were asked to say a kind word for the dollar. From a technical standpoint, the next Hidden Pivot with the potential to reverse the trend, albeit probably only briefly, lies at 74.36.  If it gets shredded as quickly as the one at 75.44, however, our major target at 72.93 could be achieved much sooner than we had imagined.  At the moment, DXY has not yet leapt into the void; it is just probing for traction not far beneath Wednesday’s lows.  That is why gold has not yet taken off.  But if the dollar should slip even a teensy little bit from here, the December Comex contract will be banging against our 1074.50 target in a New York minute.