Examples of some of our BIG CALLS!
The 1.0950 level looks like an interesting reversal point for wave ‘ii’ pink.
For now, I am watching the development of the action off the high.
Further declines will add weight to the bearish setup.
If we get a tag of the upper trend line and an impulsive looking decline in five waves,
That will put the last nail in the coffin of this rally.
On the 19th of April I wrote that USDJPY was nearing a very significant low
The price stood at 1.0880, and I was firmly bullish on the Dollar.
Tonight the price stands 400 points higher and nearing the end of the first phase of this new bull run.
There is another alternate high for wave (i) blue which would allow for a break of that low.
But it is wait and see time right now.
Tomorrows action might clear things up slightly.
With the gap down today comes a new interpretation for the short term wave count.
Wave ‘iv’ brown is now viewed as a flat correction off the recent wave ‘iii’ high.
This wave form has a 3,3,5 internal structure.
The price to watch is 1273.94,
A break lower will signal the larger wave ‘iv’ is still underway.
Whereas a break of 1292 will be a signal that wave ‘v’ has started.
The upper target remains the same at 1310.
This correction has gone on for long enough now and the market is primed for a huge rally, one worth the wait!
The upper target for the coming rally lies ion the region of 140.00,
The current wave count calls for one last rally into resistance at 20890 in wave ‘c’ pink.
This will likely be in a five wave form, and will complete wave (ii) grey.
A break of todays high at 20546 will get wave ‘c’ under way.
The larger structure is very bearish indeed, and calls for a long slide into the beginning of a new bear market over the coming summer months.
The DOW took another impulsive looking dive lower this evening.
The ease at which this market sheds points should be of some concern to the bulls out there.
But the crowd never notices the bubble they are living within.