Graham Summers Weekly Market Forecast (the End Game Approaches Edition)

Monday, July 18, 2011
By Paul Martin

by Phoenix Capital Research
ZeroHedge.com
07/18/2011

As you can see, the US Dollar looks to have just broken out of a falling wedge pattern. The ultimate target for this breakout, if confirmed, is over 84. The only thing that could instigate that kind of move would be a full-scale Crisis (the last two significant US Dollar rallies were due to the 2008 Crash and 2010 Euro Crisis, respectively).

If this happens it will be the Eurozone that starts it. The debt problems over there have no spread to Italy, a country far too large for the EBC to bail out. And with the European banking system being just as, if not even more saturated with toxic debt as the US’s, we could see a systemic collapse over there from just about anywhere: Portugal could take down Spain which could in turn take down Germany, etc.

Indeed, the Euro is hanging on for dear life at 140. A break below this level would indicate we are at the beginning of a serious breakdown in the Eurozone. That would be the trigger to watch for the beginning of REAL trouble.

The Rest…HERE

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