Good evening to you all and the Lord’s blessings to you all tonight.

Thoughts from John Hussman today.

Be careful about the “opportunity” provided by a market that remains near the steepest valuations in history, with (still) divergent market internals, having cleared oversold compression last week. Conditions can shift, but that’s the snapshot here. Not a forecast. Just FYI.

EURUSD.

EURUSD 1hr.

EURUSD 4hr.

EURUSD daily.

After a very slight new high in wave (b) on Friday, EURUSD has turned south again today to begin wave (c).
The pattern is not ideal off that wave (b) top,
but I am willing to give wave (c) another day or so,
to trace out a five wave pattern lower and break 1.090 again to complete wave (c) and wave [ii].

Tomorrow;
Watch for a five wave decline to break 1.09 to complete wave [ii].
Wave [ii] must hold above 1.0806 to complete this pattern.

GBPUSD

GBPUSD 1hr.

GBPUSD 4hr.

GBPUSD daily.

cable is really perplexing me over the last few sessions,
but there is a possible bullish pattern developing.

the action off the low at wave ‘4’ is barely impulsive into Fridays high.
This can be viewed as wave ‘i’ complete.
Todays trade is essentially sideways,
so I am looking at a possible wave ‘ii’ correction still in play here.
In this scenario,
wave ‘ii’ should fall back into 1.3087 again to complete that correction.
And then we can expect a rally to turn higher again by midweek in wave ‘iii’.

Tomorrow;
Watch for wave ‘ii’ to complete that correction at 1.3087.
The price must hold above 1.30 again for this pattern to remain valid.

USDJPY.

USDJPY 1hr.

USDJPY 4hr.

USDJPY daily.

Wave ‘v’ of (v) of [i] made a very slight new high today at 119.48.
The pattern in wave (v) is all but complete here as I can see a five wave internal pattern complete in wave ‘v’ pink also tonight.
So all we need now is a clear turn lower off the highs to begin wave (a) of [ii]/

Tomorrow;
Wave [ii] should dominate this weeks trade if this pattern is correct here.
So watch for wave (a) of [ii] to fall into the 38% retracement level at 117.65 over the next few sessions.

DOW JONES.

DOW 1hr.

DOW 4hr

DOW daily.

Three waves up and throw-over to complete wave ‘c’ of (ii) today.
This pattern is now at a very critical point of its structure.
If wave (ii) is complete here then we should see a sharp reversal this week to begin wave ‘iii’ down.
Ideally wave ‘i’ of (iii) will now fall immediately in five waves off the top at wave (ii).
I would like to see a solid break of 33700 in wave ‘i’ of (iii).
And if the market continues to fall into the interim low within wave ‘c’ of (ii) at 32680,
that action will boost the probability that wave (iii) is underway here.

Tomorrow;
Watch for the high at wave (ii) to hold at 34809.
Wave ‘i’ of (iii) should continue lower and trace out five waves down.

GOLD

GOLD 1hr.

GOLD 4hr.

GOLD daily.

Gold is now in a possible transition phase between the corrective wave [ii] and a rally into wave [iii] this week.
The action today is still pretty corrective to the upside,
and the price is holding a lower high below 1950 at wave ‘i’.

At this point it looks likely that wave ‘ii’ is still in play here.
And I am allowing for a larger three wave pattern in wave ‘ii’,
to form a higher low above 1894.30 by tomorrow evening.

If this short term count is correct here,
we can expect a move higher again into wave ‘iii’ of (i) of [iii] by midweek again.

Tomorrow;
Watch for wave ‘ii’ of (i) to complete three waves down and complete above 1894.30 by tomorrow evening.
A break of 1950 again will signal that wave ‘iii’ is beginning.

CRUDE OIL.

CRUDE OIL 1hr.

CRUDE OIL 4hr.

CRUDE OIL daily.

Crude has now rallied to the 50% retracement level of wave ‘1’ this evening.
The rally off the low at wave ‘1’ is better described as a five wave structure now.
With that in mind,
I am looking at a larger wave ‘2’ zig-zag pattern for wave ‘2’ now.
In this scenario wave ‘2’ should trace out an internal 5.3.5 structure this week.
and that suggests a pretty volatile week ahead with a some serious swings ahead of us.

Tomorrow;
Watch for wave [a] of ‘2’ to complete and reverse lower early in the session tomorrow.
Wave [b] should fall in three waves and complete above 93.00 again.

S&P 500.

S&P 500 1hr

S&P 500 4hr

S&P 500 daily.

The S&P is holding pretty flat today as the price tops out wave ‘c’ of (ii).
There is no indication that wave (iii) has begun yet,
but this is a perfect area for the this wave to roll over,
and an initial spike lower to occur to begin wave (iii).
Wave ‘i’ of (iii) should fall all the way back into the 4140 area in five waves.
this will retrace wave ‘c’ and shift the pattern to a much more bearish outlook for the coming few weeks at least.

Wave (iii) down has the potential to break 4000 easily where wave (iii) will equal wave (i).
With a lower target at the 3700 level if wave (iii) reaches 162% of wave (i).
So there could be a pretty large shock ahead now if this short term count holds up.

Tomorrow;
Watch for wave ‘i’ of (iii) to begin a five wave decline again.
A break of the 4300 level again will signal wave ‘i’ is underway.

SILVER.

SILVER 1hr

SILVER 4hr.

SILVER daily.

Silver is at a pretty important point in its wave structure today also.
The price has retraced higher in a corrective manner off last Fridays lows.
And with that I am looking at a possible (i) (ii) impulse wave to begin wave [iii] down now in place.
The price must fall sharply over the coming few sessions for this short term pattern to remain valid.
A break of 24.80 again will signal that wave (iii) of [iii] is underway.

The alternate count for wave [ii] is also shown this evening.
This involves a larger three wave pattern to complete near the 62% retracement level at 26.01 this week.
In this scenario,
the price should hold above 24.45 at last weeks lows.

Tomorrow;
Watch for a possible wave (iii) of [iii] decline to begin this week.
A sharp decline tomorrow to break 24.80 sill signal that wave ‘i’ of (iii) is underway.