Good evening to you all, and may the Lord bless you all tonight.

It couldn’t be more clear where we stand at the moment.

John P. Hussman, Ph.D. @hussmanjp

Worst passive investment menu in history. By relentlessly depriving investors of risk-free return, the Fed has spawned an all-asset financial bubble that now offers return-free risk. Whatever y’all think you’re doing here, it’s not “investment.”

I know you don’t care.

EURUSD.

EURUSD 1hr.

EURUSD 4hr.

EURUSD daily.

Forgive me for relabeling the hourly chart tonight,
I made an error on the degree of the hourly count last night!
The count is effectively the same.

EURUSD has created a small impulse wave lower off that wave (iv) high at todays high.
If the price continues to fall and breaks 1.1270 again tomorrow,
that will signal wave ‘iii’ of (v) is underway.
The minimum target for wave (v) les at 1.1186.
But I suspect wave (v) will extend a little lower now.

Tomorrow;
Watch for wave ‘iii’ of (v) to fall below 1.1186 as an initial target.

GBPUSD

GBPUSD 1hr.

GBPUSD 4hr.

GBPUSD daily.

Cable did extend a lot higher in wave (c) of [ii] than expected,
the pattern is still solid though,
and right now the action seems to be reversing after hitting the 62% retracement level of wave [i].
So at the moment we have a completed impulsive pattern at wave [ii].
And wave [iii] down is the focus from here.

Tomorrow;
We should see a small degree impulse wave develop from here in wave (i) and (ii).
This will be a big hint that wave GBPUSD is gearing up for a waterfall type decline in wave (iii) of [iii] of ‘3’ over the coming weeks.

Watch for wave (i) to fall in a five wave pattern and break the and break the wave (a) high at 1.3375 again.

USDJPY.

USDJPY 1hr.

USDJPY 4hr.

USDJPY daily.

USDJPY is in a holding pattern right now,
so I am looking at this action as a possible wave (iv) of [v] now.
If that is true,
then we should see wave ‘b’ top out overnight,
and wave ‘c’ of (iv) fall again back towards that 1.1500 handle again at the previous wave ‘iv’ low.
I will then look for another rally into wave (v) to begin by Friday.

Tomorrow;
Watch for wave ‘c’ to fall and complete three waves down in wave (iv) by tomorrow evening.

DOW JONES.

DOW 1hr.

DOW 4hr

DOW daily.

Gold has now completed a lower high below the wave [b] top at 1831.
The pattern off that top is reasonable impulsive pattern so far.
If this short term pattern is correct,
then I can expect a decline again into wave (iii) of [c] to begin before the end of the week.
The key low now lies at wave (i) blue at 1797.
A break of that low again will signal wave (iii) of [c] is underway.
Wave (iii) should fall into the previous extreme low at 1751 again.
And the larger wave [c] is targeted to the 1720 area to complete.

Tomorrow;
Watch for wave [c] to continue lower in five waves and the high at wave [b] should hold at 1831.

GOLD

GOLD 1hr.

GOLD 4hr.

GOLD daily.

Tomorrow;
Watch for wave [c] to continue lower in five waves and the high at wave [b] should hold at 1831.

CRUDE OIL.

CRUDE OIL 1hr.

CRUDE OIL 4hr.

CRUDE OIL daily.

Crude is turning lower this evening also.
The pattern in wave [v] is not ideal but there is a possible five wave form to it.
It is notable that the price reached towards the upper channel at the high today and is now falling away again.
Now comes the test.
We have three waves up complete in wave (2),
so if we get an impulsive decline off todays high to break 74.00 again
that will signal wave [i] of ‘1’ of (3) is in play.
Ideally wave ‘1’ blue will break below 66.00 at the wave ‘B’ low before a correction higher in wave ‘2’ later in the month.

Tomorrow;
For the moment,
I will just be looking for a five wave decline into wave [i] to complete by Fridays close.
We will see tomorrow if wave [ii] gives us a clear lower high to work with.

S&P 500.

S&P 500 1hr

S&P 500 4hr

S&P 500 daily.

Silver is battling to stay above 22.57 at this weeks low tonight.
This bullish pattern will not favor a break of that low again.
As that will really make it hard to claim wave ‘3’ of ‘iii’ is underway here.

The invalidation level for this pattern remains at the wave ‘ii’ low of 22.16.
A break of that low will favor the very bearish alternate count on the 4hr chart.

Tomorrow;
It is critical that the price holds above 22.16 this week.
A rally back above 23.40 again this week will save the bullish pattern.
But I will admit that I am getting skeptical now!

SILVER.

SILVER 1hr

SILVER 4hr.

SILVER daily.

Silver is holding onto the bullish count for the moment at least,
but as I have now mentioned art least ten times,
we need a sharp rally into a third wave to confirm the bullish count.
A rally back above 23.40 again will be a sign that wave ‘3’ of ‘iii’ is underway.
But I just can’t shake that bearish alternate count on the 4hr chart yet.
That count is a mirror image of the main wave count now.
And it shows the recent declines as a [i] [ii] lower high.
The risk here is a decline into wave [iii] as shown.

Tomorrow;
The rally is due and must arrive this week!

Watch for wave ‘3’ of ‘iii’ to push back above 23.40 again.