E-Waves.
The NASDAQ move off the August lows has too many overlaps to convince me of a longer term motive wave. Upper channel line of resistance from the '04 high has been very strong.
Deja Vu. The DOW topped before the NASDAQ in 2000. This is happening to a smaller degree right now.
The global mood in the late 1990's was very upbeat. Now the US faces one of its worst popularity polls in decades. These feelings do not encourage investors, and since the US stock markets have not dropped yet, there is some catching up to do as foreign investors cash out of the US. These negative feelings hurt US exports. The falling dollar isn't enough to convince the world to buy america. If the sentiment worsens, US based companies could start closing shop.
Depending on which happens first, the dollar could strengthen as US companies sell foreign currencies and buy to US$. Or foreign investors could sell US stocks and bonds and then sell US$ for their local currency. With the large amounts of US capital in the form of factories located oversees, it's difficult to determine who has the stronger hold on the other. It's more of a financial MAD (mutually assured destruction).
