Good evening to one and all.

The Lord’s Blessing’s to you all again tonight.

Albert Edwards

US CPI is being super inflated by the dominant shelter component (weighting has just increased to 34.4%). Both the yoy and 6M change continued to rise still further. But we know from looking at house prices where the CPI shelter component is heading over the next year.

The Layoffs Continue: Ford To Cut 3,800 Workers In Europe

https://twitter.com/bullwavesreal

EURUSD.

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EURUSD daily.

The new wave ‘b’ scenario played out well so far today.
Wave ‘c’ of ‘b’ broke the wave ‘a’ top at 1.0793 and completes the expanded flat correction idea.
The price has dropped off the session high again this evening,
The move lower was a little choppy,
but as long as the wave ‘b’ high holds at 1.0803 then I will continue to look lower in wave ‘c’ of (a) as shown.

tomorrow;
Watch for wave ‘b’ to hold at 1.0803.
Wave ‘c’ of (a) should continue lower in five waves towards the 1.05 area over the next few days.

GBPUSD

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GBPUSD daily.

Cable hit the target level at the 62% retracement level at the high today,
the trend channel has been filled as a three wave pattern,
and now we have a spike lower off the high to suggest wave (ii) is complete at todays high.
The high of wave (ii) now stands at 1.2270.
That level must hold for this wave count to remain valid.
And I want to see a clear five wave decline into the wave (i) low at 1.1960 to signal wave (iii) is underway.

Tomorrow;
1.2270 must hold.
Wave ‘i’ of (iii) is expected to retrace most of wave (ii).
So the target for wave ‘i’ of (iii) lies at 1.1960.

USDJPY.

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USDJPY daily.

The choppy action has ended up favoring the main count today.
The wave ‘i’ high at 132.89 has been broken to the upside again,
and the action today sugests that wave ‘3’ of ‘iii’ of (iii) is now a possibility here.

If the main count is correct,
we should see a serious upside acceleration build over the coming days,
with a possible target for wave ‘iii’ pink at 137.50.
I know this is a tall order,
but the possibility is there if this count holds.

Tomorrow;
The wave ‘2’ hold must hold at 132.50.
A sharp move higher to break 134.80 will signal wave ‘3’ of ‘iii’ is underway.

DOW JONES.

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DOW daily.

All the worst attributes of a corrective process have been embodied in todays action.
A sharp rally,
followed by a sharp reversal.
And now we appriach the close ending pretty much flat on the day.

It’s been a whole lot of action to go absolutley nowhere,
essentially – its a correction!

I have offered a possible interpretation tonight showing the top of wave ‘c’ of (ii) at todays highs.
The market actually hit the top trend channel line again at the high and that was enough to send the price sharply lower again.
Overall I am confident in this corrective scenario,
but wave ‘i’ of (iii) needs to prive itself now.

Tomorrow;
Watch for this ‘1’ ‘2’ count to hold that lower high below the wave (ii) top.
Another sharp move lower in wave ‘3’ of ‘i’ will tip the scales in favor of wave ‘i’ of (iii).
Todays high at wave ‘c’ of (ii) should hold as wave ‘i’ of (iii) develops.

GOLD

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I am looking at another idea for wave ‘b’ pink tonight after todays lacklustre trade.
The price fell to a low at 1843 today and so far the pattern into the low is in three waves.
I have labelled that low as wave ‘b’ of ‘b’,
with a rally in wave ‘c’ left,
which should carry the price back into 1890 again to complete and expanded flat correction in wave ‘b’ pink.

Tomorrow;
Watch for the low at wave ‘b’ to hold at 1842.
A break above 1870 again will signal wave ‘c’ of ‘b’ is underway and we can expect a top for wave ‘c’ with a break of 1890 again.

CRUDE OIL.

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After another corrective decline today in crude oil,
the price action over the last few sessions is not well explained by the recent count.
The alternate bearish count is still a possibility here,
but I think todays action has opened the door to an extended wave (iii) of [c] rally.
And you can see that is the main count on tonights hourly chart.

The decline today is labelled as wave ‘ii’ of (iii) now.
and this wave count suggests wave ‘iii’ of (iii) is going to push the price up above 82.60 again before topping out a five wave pattern in wave (iii).
this rally in wave ‘iii’ should continue tomorrow to confirm this count.

Tomorrow;
The low at wave (ii) blue must hold at 76.68.
WAve (iii) should continue higher to top out above 83.00 later this week.

S&P 500.

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S&P 500 daily.

The S&P is holding a different pattern than the Dow tonight.
Three waves down into a possible wave ‘iv’ low at 40.50 is pretty clear.
And now a five wave rally to retrace most of the decline in wave ‘iv’.
The S&P is setting up for a new high in wave ‘v’ of (c) much to my dismay.
The decline today is holding above the wave ‘iv’ low so far.
If that wave ‘iv’ low breaks,
then I can rethink the pattern again in favor of the bearish outlook.
but for now I think wave ‘v’ is going to break above 4200 again and possibly close out the trend channel again later in the week.

Tomorrow;
WAtch for wave ‘iv’ to hold at 4050.
If wave ‘v’ is going to break to a new high in this rally then it should happen tomorrow.

SILVER.

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SILVER daily.

Silver has been sitting at this 21.80 level for three sessions now and the action is not getting any clearer as the days go on.
The pattern still fits a possible expanded flat correction in wave [b],
but wave (c) of [b] needs to get underway tomorrow in order to stick with this pattern.
If the rally in wave (c) does not happen tomorrow,
then I will be forced to rethink the short term pattern again.

Tomorrow;
watch for wave (c) to push higher towards that 22.60 level at the previous wave (iv) high.