Good evening folks, the Blessings of the Messiah to you!

I can’t help but show you John Hussmans latest chart with comment!

Today’s market action may not have seemed like anything special, but a sandwich of divergences in breadth, leadership, and yields is rarely a healthy combination.

(not to mention record valuation extremes, lopsided sentiment, and deterioration in our key measure of internals)

John Hussman.

EURUSD.

EURUSD 1hr.

EURUSD 4hr.

EURUSD daily.

EURUSD has basically done nothing today!
But as long as the price holds below 1.1873 at the wave ‘i’ low,
then I am happy to stick with the idea that wave ‘iii’ is underway.
The fact that the price seems to be consolidating below 1.1873 is a good sign that we have further to drop.

Tomorrow;
Wave ‘iii’ must continue lower for the rest of the week.
I am looking for a break of 1.1700 again before wave ‘iii’ completes.
1.1873 should hold as wave ‘iii’ develops.

GBPUSD

GBPUSD 1hr.

GBPUSD 4hr.

GBPUSD daily.

Cable has also consolidated below the previous wave (i) low at 1.3776.
Todays trade also suggests wave ‘iii’ is ongoing.
With further downside expected in wave (iii) grey.

Wave (iii) will reach equality with wave (i) at 1.3547,
and wave ‘iii’ of (iii) should do most of the work to get us down to that low.
So I think it is reasonable to allow for more downside here.

Tomorrow;
Watch for wave ‘iii’ down to continue.
The low of wave (i) at 1.3776 must hold.

USDJPY.

USDJPY 1hr.

USDJPY 4hr.

USDJPY daily.

USDJPY has only traced out a three wave recovery off the low at wave [iv] so far.
I want to see a clear five wave pattern higher into the previous high at 109.35 again to signal that wave [v] has begun.
Wave (i) of of [v] is expected to break the 109.35 high.
before correcting to a higher low above the wave [iv] low at 108.40.

I have set the larger target for wave ‘3’ blue at 110.80.
This is where wave ‘3’ reaches 162% of wave ‘1’.
So there is the potential for more upside as wave ‘3’ completes.

Tomorrow;
watch for wave [iv] to hold at 108.40.
WAve (i) should continue higher to hit 109.35

DOW JONES.

DOW 1hr.

DOW 4hr

DOW daily.

We had a sharp spike higher today off Tuesdays low.
The sideways pattern this week now has the form of a running flat correction in a possible wave (ii).
After wave ‘c’ of (ii) did not make a new high above wave ‘a’ today.
Add on top of this the sharp move lower this evening and we have mounting evidence in favor of this bearish count on the hourly chart.

At this point we have a small lower high in place.
and now we need to see a follow through to the downside into wave (iii).
If we get a break below the wave ‘b’ low at 32350 tomorrow,
then we can expect wave (iii) to move quickly lower for the remainder of the week.

Tomorrow;
Watch for wave (ii) to hold at todays high.
Wave ‘i’ of (iii) should push into the lows again at 32350.

GOLD

GOLD 1hr.

GOLD 4hr.

GOLD daily.

Gold has drifted sideways for three days now and we are still stuck below the wave [iv] high at 1755.
The action is a little frustrating for sure,
as I am want this final push lower into the 1650 area to be over and done with in wave (4),
so that we can finally concentrate on the upside again in wave (5).

But for the moment,
the price is stuck in correction mode in wave (ii) blue as shown.
And wave (iii) down is on hold!

Todays corrective lower high can be viewed as a failed wave ‘c’ of (ii),
where wave ‘c’ is an ending diagonal.
And in this case,
wave (iii) down should begin quickly.

Tomorrow;
Wave [iv] must hold at 1755.
Wave (iii) of [v] will be confirmed with a break of 1719.

CRUDE OIL.

CRUDE OIL 1hr.

CRUDE OIL 4hr.

CRUDE OIL daily.

I have switched to the alternate count today in crude.
This shows a five wave decline into wave [i] complete at Tuesdays low.
And todays rally is now labelled as wave (a) of [ii].
Wave (b) should fall to a higher low above wave [i] by Friday evening.
and then we should see a completed three wave correction in wave [ii] by Monday evening I suspect.
This will create a bearish impulsive pattern off the high and lead us toward a larger decline into wave [iii].

Tomorrow;
Watch for wave (b) to fall back into the 59.00 area in a corrective decline.

S&P 500.

S&P 500 1hr

S&P 500 4hr

S&P 500 daily.

The action in the S&P over the last couple of days is unclear at the moment.
We have a five wave decline into the low at wave ‘i’.
followed by a three wave correction to a lower high in wave ‘ii’.
All of this is kosher for sure,
but the pattern off the wave ‘ii’ high is where the waters get murky!

We have three waves down off the wave ‘ii’ high,
followed by another spike lower this evening.
The short term count is calling for a sharp drop into wave ‘iii’ to get underway soon,
but that cannot be confirmed until we get a drop below 3880 again.
And a pattern that fits a five wave form.

If we are still stuck within wave ‘ii’ then we will see another push into 3960 again before the end of this week.
and then next week will bring wave ‘iii’ down.

Tomorrow;
watch for wave ‘iii’ to take over and push below 3880 to confirm the decline has begun.

SILVER.

SILVER 1hr

SILVER 4hr.

SILVER daily.

The price has traced out a five wave pattern off the high at wave [ii] into Tuesdays low.
I have relabeled wave (i) complete at that low.
After that,
we have a small three wave pattern higher today off Tuesdays lows.
The retracement is very small I will admit,
but it can be labelled as wave (ii) in place,
if that is the case,
then wave (iii) down will begin tomorrow and break 24.80 to confirm wave (iii) of [iii] is underway.

Tomorrow;
Watch for the decline to continue tomorrow into wave (iii) of [iii].
Wave (iii) should hit 23.70 at a minimum.
this is where wave (iii) reaches equality with wave (i).