Countdown to Market Mayhem: Sell Now And Go Away or Buy Buy Buy

The EURUSD cross threatened a major breakdown on Friday (blue line), but recovered. It is still within a declining channel, but that channel points to a breakdown in the chart. Moreover, EURUSD spent 3 days below the blue support line last month, March 19-23. The U.S. equity market bottomed on March 23.

The Federal Reserve meets this week with a policy statement on Wednesday.

I'm open to the "Milkshake Theory" of a rising U.S. dollar attracting capital into U.S. markets, but remain bearishly positioned. I also believe that even if the Milkshake is correct, it will proceed in waves punctuated by deflationary waves. Here is iShares MSCI Emerging Markets (EEM) also sitting on a long-term trendline.