In the chat room yesterday, someone mentioned that Shadowstats’ John Williams is looking for a selloff in the dollar.  From a Hidden Pivot standpoint, however, there is no reason to expect this. The daily chart (see inset) shows how very robust the rally from early February’s lows has been, with each new thrust exceeding a prior ‘external’ peak. Although it’s possible this  dynamic is about to end with the failure of DXY to push above the labeled 82.88 peak on the next burst, this looks unlikely.

If that burst does indeed surpass the peak, it would signal an almost certain test of last July’s 84.10 summit. Perhaps Williams has been seduced by the fine looking head-and-shoulder pattern begun in October 2011?  I don’t put much store in such patterns, however, because they are everywhere you look for them.  We shall see. But if you’re positioning yourself for a reversal of the long-term bullish trend, I wouldn’t bet too heavily on it.  Click here to sample Rick’s touts free for a week.