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Good evening folks.

I am going to keep rolling with the ‘scary chart’ theme this week!

Every day I am picking up numerous charts that shown how COMPLETELY SCREWED the market actually is.

So every day I am going to add the next one to the list,

Todays chart du jour is:

 

 

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EURUSD.

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EURUSD 1hr.

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EURUSD pipped above the Fridays highs by a small margin today.
This does not change the near term outlook though.

Wave ‘b’ still shows a clear three wave correction into todays highs.
And now we have price moving lower again off the high.
Wave ‘c’ down should fall down below 1.0725 at a minimum to complete wave (c) of [b].
If the larger wave [b] trend channel is filled,
then we could see wave [b] complete at 1.0620,before turning higher into wave [c].

Tomorrow;
The final leg of this long [b] wave is upon us.
Watch for wave ‘c’ of (c) of [b] to fall below 1.0725 at a minimum.

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GBPUSD

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GBPUSD 1hr.

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Cable is falling this evening also and the decline is picking up pace as I write.
The corrective high today is labelled as wave ‘ii’,
and wave ‘iii’ is expected to continue lower for the next few sessions and break the 1.2000 level before consolidation takes place.

In this scenario the high at wave ‘ii’ pink must hold at 1.2377.

Tomorrow;
Watch for wave ‘iii’ down to continue for the rest of the week.
the lower support line lies at 1.2161.
The larger wave (iii) in grey will be confirmed with a break of that level.

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USDJPY.

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USDJPY 1hr.

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USDJPY has dropped off the highs at wave (iii) today after a nice break up above the previous wave [iv] high at 107.50.
This decline is viewed as wave (iv) of [i].

The decline has a three wave structure to it so far,
so it classifies as a correction.
Wave (iv) can develop even further into a larger corrective structure of course,
but wave (iv) must complete above the wave (i) high at 106.68.

Tomorrow;
The wave (iii) high lies at 107.76.
A break above this level will signal wave (v) of [i] us underway.

Ideally wave [i] will break above the next resistance level at 108.07 before wave [ii] begins.

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DOW JONES.

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DOW 1hr.

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Short term momentum in the DOW is turning lower again this evening.
This is a welcome development at this point,
given that a significant bearish divergence is in place on the 4hr chart for some time.

It remains to be see if this can be the trigger into a complete momentum reversal though.
Watch this space though!

The price is declining in an impulsive manner also this evening.
And again this is occurring off a corrective lower high in wave [ii] green.

I am expecting a decline in wave (i) of [iii] this week.
If this slide lower continues tomorrow and takes us back below the 24000 level,
that will signal wave ‘iii’ of (i) is underway.
And we should expect the decline in wave (i) to threaten the wave [i] low before completing.

Tomorrow;
Watch for the high at wave ‘ii’ pink to hold.
Wave ‘iii’ of (i) must continue lower and accelerate the decline below 24000.

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GOLD

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GOLD 1hr.

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Gold is again confounding all expectations!

Both wave counts call for a rally from current levels.
The main wave count calls for a very significant and sustained rally in wave ‘iii’ of (iii) of [iii].
This rally is expected to push the gold price to a new all time high over the coming months.
But there still no sign of that rally taking hold yet.

Maybe gold is cocooning like the rest of us!

The noose is tightening around the price action now though,
as you can see from the two trend lines converging over the last month.

The continued sideways action must end soon.
And I still favor the upside as shown on both waves counts.

Tomorrow;
If we see another drift lower tomorrow that touches the lower trend line and then a rally occurs off that low.
That action will favor the alternate count.

However an acceleration higher now,
will signal wave ‘iii’ of (iii) is underway.
A break of 1723 confirms wave ‘iii’.

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CRUDE OIL.

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CRUDE OIL 1hr.

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Crude oil is rallying now on hopes and dreams of a resurgent economy.
Of course the hopes are a function of the end of the trend,
not the beginning!

There was absolutely no hope in the market back at the end of April
when wave ‘B’ was making a low.

I was looking for another rally out of that wave ‘B’ low in wave ‘C’.
And all I heard on the news was how oil was doomed to stay below $10.

Now I am looking for a severe decline again after a corrective rally,
and all we see renewed optimism in the headlines about green shoots of demand ect.

The timing is perfect for another oil rout.

Tomorrow;
Price remain off the high at 26.74 today.
The short term action looks corrective to the upside,
but we need to see a reversal lower in wave (iii) soon to confirm this.

Watch for that high at 26.74 to hold.
A break of 22.94 will confirm wave (iii) is underway.

A break of that high at 26.74 will mean wave ‘C’ is still in force,
but it won’t last long I suspect.

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S&P 500.

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S&P 500 1hr

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The S&P is heading lower also this evening and so far the action looks impulsive.
We have yet to break Mondays lows,
but this is a good start.

If this decline continues tomorrow,
that will signal wave ‘iii’ of (i) is underway.
And wave ‘iii’ should do most of the heavy lifting to bring price back towards that critical low at 2830 again.

2830 should break as wave (i) completes,
And that will set us up for a bearish lower high to develop again in wave (ii).

The turn lower into wave (C) is taking longer than expected for sure,
but all the indications are in place to signal a turn is imminent.
All we need now is for the price to turn lower impulsively to begin wave (C).
I am expecting that to happen by the end of this week.

Tomorrow;
Watch for wave ‘iii’ of (i) to push lower into 2850.
Wave (i) itself should be complete by the end of this week.

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SILVER.

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SILVER 1hr

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There is not much to report in silver again today,
apart for the ongoing compression in the price action.

To be honest,
this latest tight range of action is hinting at the alternate count now.
But until I get a clear break of 15.83 again,
then I will have to allow for the main count to run its course.

Tomorrow;
We wait another day to see if the action can pick a definite path in the short term.

Watch for 15.82 to hold
and wave [c] down to turn lower into the trend channel line at 14.50 to complete wave ‘2’.

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