U.S. Dollar Index (90.40) Comment

The U.S. Dollar Index exceeded my short term upside expectations by a wide margin prompting a major revision of my longer term view. I now suspect that the 2004 low could prove to have been the long awaited longer cycle low. The push above 90 on the index has taken us into wildly overbought territory for the moment. The index could work off this overbought condition on the short term by getting stuck for a while around the 90 level.