When you look at the accompanying chart of the U.S. Dollar Index, do you see an ominous head & shoulders pattern?  If so, you’ve probably got plenty of company, including dollar bears and chartists who see bogus H&S patterns everywhere they look. I mention this because those dollar bears have ratcheted up the hubris in recent weeks for the usual stupid reasons: collusion by America’s enemies to usurp the dollar’s unshakable global hegemony; an imminent outbreak of inflation; an overdue bear market; seignorage envy. The usual claptrap. When I look at the chart, however, I see a rally so powerful that it not only blew past centennial resistance and a daunting Hidden Pivot at 100.55, it is now tap dancing on those erstwhile obstacles as though intending to launch powerfully anew. Don’t get me wrong, the dollar could still pull back, perhaps sharply, before it embarks on a renewed tear toward targets as high as 120 that I’ve broached here, and in countless interviews, before. From my technical perspective, insatiable dollar buyers from around the world have made chop suey out of an erstwhile granite ceiling. So color me bullish — and a deflationist until the cows come home. ______ UPDATE (Jan 5, 11:03 p.m. ET): The dollar has come down hard this week, but the selloff has done little technical damage so far to the daily chart. However, a fall exceeding 100.73  would turn the chart impulsively bearish and trigger a yellow flag. ________ UPDATE (Jan 12, 10:36 p.m.): It’s tempting to ignore the fact that the little sonofabitch printed 100.72 (!) at the intraday low.  Still, an impulse leg is an impulse leg, and we’ll have to treat it as such for purposes of targeting. First, though, let’s see how far this bounce from a crystal-clear target at 100.81 goes (60-min, A=103.44 on Jan 3).  _______ UPDATE (Jan 17, 11:33 p.m.): The dollar appears bound for the 99.50 target shown. Moreover, it would become a ‘mechanical’ short if the so-far weak rally touches the red line at 100.62. ________ UPDATE (Jan 18, 10:23 p.m.): This afternoon’s ratcheting short squeeze was bullishly impulsive on the hourly chart and would invalidate the 99.50 target given above with just a little more upside. The rally need only exceed 101.73, the point ‘C’ high of the downtrend to put bulls back in the driver’s seat.  _______ UPDATE (Jan 23, 9:03 p.m.): The rally failed and has given way to a plunge that will hit the 99.50 target. If there’s a bounce from just above it, that could set up a possible ‘counterintuitive’ buy, where A=99.43 (daily chart, 12/8). _______UPDATE (Jan 30, 8:59 p.m.): Zzzzzzzzzzz.