Elliott Wave Update ~ 9 May 2013

Long term count reminder. Cycle wave b of Supercycle wave (a)

At the weekly level, the triple zigzag still is the best count as it satisfies the most rules and guidelines of EW theory.

Wave (C) of [Z]:

Minor 5 of (C). Would look better if we had a Minute [iv] and then [v]. Previous subwave (iv) of [iii] is a key price level.

Not only are stocks frothy (EWI reported a 90% Daily Sentiment Index reading in last night's update) but bonds are also quite bullish. Via Sentiment Trader:

Which asset class will benefit from a sellof in both stocks and bonds? Why King Dollar of course. Technically its ripe for a surprise upside move that will catch almost everyone off guard. A solid break over the neckline should guarantee a rapid rise toward the 100 level last seen 10 years ago.

Everyone seems to agree the Fed was and is out to devalue the dollar since its 2008 low yet they have failed miserably in that regard. Funny how we never here about that in this cycle b bounce.  Will a dollar index at 100 be good for the Fed?  The economy? Corporations? What effect on interest rates? What about the massive derivative market?