U.S. Dollar Index (74.40)

Yesterday, the U.S. Dollar Index finally dropped below important downtrending long term support at 74.85 on my chart. It was in the cards, and the event freed up the gold price to surge on the upside. One more confirmation that the free world is into a deepening, damaging recession.

A few months back, Mr. Greenspan said it was looking a lot like 1987 all over again, but he neglected to mention the absolute horror of the super secret subprime mortgage mess that was set in motion under his watch.

It wasn’t long before we came to understand what Greenspan was talking about because news of the legal subprime mega robbery gushed out. Money managers were left to tell millions of seniors that Triple A means ALL ASSETS ABSCONDED.

In 1987 there was a crash and it was over. Our present market setback has not shown me crash credentials so far. To me it looks more like the steady painful retreat that occurred after the year 2000 market peak. That correction kept everybody aching for two and a half years !