Dollar index is moving as expected. On daily chart, wave 2 was completed yesterday and we seem to have started wave 3 up now. Within wave 3, we seem to have completed minor wave i and doing minor wave ii now. Minor wave ii could do 50% retracement or even 61.8% but I think it might restrict around 109 which is more than 38.2% retracement and also happens to be 20 day moving average.
Yesterday’s upmove in DXY caused S&P to fall by more than 4%. Once the minor degree wave iii starts, which could happen in next couple of days then we might see another round of selling in equities and cryptocurrencies.
When will upside wave start??
Minor wave iii of 3 may already have started today though further confirmations are needed. I shared an update on DXY earlier today with more details. Here you go – https://elliottwavestrading.com/dollar-index-dxy-update-20th-september-2022/