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Good evening to one and all.

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EURUSD.

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EURUSD 1hr.

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EURUSD peaked in wave (c) of [iv] thie morning at 1.0888.
Wave (c) traced out an ending diagonal as the closing pattern in the correction.
The market then moved sharply lower off the high,
and this decline is now viewed as the beginning of wave [v] of ‘1’.

Wave [v] itself should trace out a five wave pattern lower,
with a minimum downside target at 1.0636.
This is where wave [v] will break the recent low at wave (b) of [iv].

Tomorrow;
Watch for wave [v] to hold below 1.0888 as the pattern develops over the next few days.
Wave [v] as ‘1’ should complete this week.
So a rally in wave ‘2’ is on the cards for wave ‘2’.

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GBPUSD

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GBPUSD 1hr.

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Cable is now moving towards the larger wave [iv] idea which I mentioned last night.
The rally today seems incomplete at the moment,
and the price should continue to push up towards 1.20 to complete wave (c) of [iv].

I have altered the short term count slightly today which I think accounts for the action a little better.
The recent low is now wave [iii] and off that low wave wave a rally in wave (a),
wave (b) fell in three waves to a higher low,
and now wave (c) is on the move higher again.

Tomorrow;
Watch for wave [iv] to close out possibly by tomorrow evening.
A break of 1.1932 will be enough to complete wave (c).

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USDJPY.

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USDJPY 1hr.

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I am looking at an alternative pattern for the end of wave ‘C’ this evening.
This involves an ending diagonal wave [v] green as shown.
If this pattern is correct for wave [v],
then we should see declines once the overnight session begins.
An drop below 109.32 again should signal that wave ‘A’ has begun.

Tomorrow;
watch for a reversal to begin once this ending diagonal tops out.
The upper trend line suggests the top is already in.
if the price pushes higher and breaks resistance at 112.23,
that will rule out this pattern and I will revert to last nights interpretation of wave [v].

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DOW JONES.

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DOW 1hr.

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The DOW rallied more than expected today in wave (iv)
but for the moment I am still calling this a three wave move higher in the larger ending diagonal wave [v].
This pattern calls for one last drop in three waves to complete wave [v].
And then I will look for a rally in wave ‘4’ to begin.

It is a close call between the main count and the alternate count right now.
Both wave counts call for three wave rallies to take place.
But if the price rallies above 21000 again,
that will favor the idea that wave [a] of ‘4’ has begun.
And then we can look for a larger three wave correction higher for the remainder of this week
and most likely into next week also.

Tomorrow;
The outlook in both wave counts is for choppy and corrective trading over the next week or so.
So in general this market will be pretty hard to track as the action goes on.
Watch for wave [v] to complete with a break of 18140 again,
and then a run higher in wave ‘4’ should begin.

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GOLD

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GOLD 1hr.

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Gold broke above 1600 again today reaching a high at 1630 this afternoon.
I am not proclaiming victory on this one yet though!

The action can still be counted as a three wave correction higher off 1450.
So I want to see a clear five wave pattern develop in wave [i]
with a break of 1700 again,
before we are free of any bearish interpretations.

Tomorrow;
If todays action marks the high of wave ‘iii’ of (iii),
then we should see a consolidation tomorrow in wave ‘iv’ of (iii).

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CRUDE OIL.

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CRUDE OIL 1hr.

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Crude oil is trading in a tighter and tighter range as the days go by.
I am looking at the possibility of a triangle developing in wave [iv] of ‘3’ after todays action.
In this case the price must not break 28.56 again as the triangle develops.

If the price falls back below 21.00 again over the next few days,
that will signal that wave [v] is underway.
And then we can expect this decline in wave ‘3’ to find a final low in the mid teens somewhere.

Tomorrow;
Watch for 28.56 to hold.
Wave [iv] should close out pretty soon and then price should push lower into wave [v].

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S&P 500.

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S&P 500 1hr

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Its a similar story in the S&P tonight.
The rally today is in three waves.
And because of that we are open to interpretation.
The main wave count still stands at the moment
because the rally has not broken the previous internal high within the ending diagonal.
That high stands at 2511.
So wave [iv] of ‘5’ should be done now,
and wave [v] of ‘5’ is expected to fall in three waves again.
And wave [v] should break the 2184 low again to complete the larger pattern.

Tomorrow;
If the price continues above 2511 from here,
that will trigger the alternate count and then we can expect wave (2) to continue higher in three waves over the next week or so.

Just like the DOW,
both counts expect a wild whipsaw in the markets over the next week as wave (1) and (2) complete.
When this action clears up at the end of wave (2).
Then the long descent into wave (3) will begin.

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SILVER.

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SILVER 1hr

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There is a chance that we are further along in the pattern in Silver than I had thought.
I have moved up the wave count by one degree to illustrate this idea.

On the 4hr chart,
The 18.96 high can be viewed as the end of a long triangle in wave (4) of [C].
And you can see that the decline off the recent highs at 18.96
is now viewed as a developing five wave pattern lower in wave (5) of [C].

If this pattern is correct,
then we are much closer to a significant low in Silver right now.

The recent rally in is still viewed as a correction higher in wave ‘4’ of (5).
And we should see a new low in wave ‘5’ of (5) over the next week to complete the pattern.

Tomorrow;
Watch for wave ‘4’ to complete below 16.38 and then return lower in wave ‘5’.
the price has hit the upper trend line this evening,
so this correction in wave ‘4’ is likely over now.

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