God’s Blessings to you folks tonight.

What about that inflation?

https://www.zerohedge.com/markets/chinas-credit-impulse-just-turned-negative-unleashing-deflationary-shockwave

And a cluster of signals.

From John Hussman.

So this is interesting. Highest cluster proximity score in history (one of my few prop gauges – reflects “closeness” of conditions to cyclical peaks) Highest extremes led crashes & air-pockets, closer to *all bull peaks than any *single bull peak. Just FYI Better hope it’s 2014

EURUSD.

EURUSD 1hr.

EURUSD 4hr.

EURUSD daily.

This is the last chance for EURUSD to turn off the recent high to begin wave ‘C’ down.
The price is holding just below last weeks highs at 1.2181.
A break of that level will signal wave ‘B’ is still in force.

I have switched to the alternate count tonight also.
So I am expecting an even bigger decline off these highs once it does get going.
Wave ‘C’ down should break below the 1.1600 handle to complete.

Tomorrow;
1.2181 must hold,
watch for wave (iii) of [i] to be confirmed with a break of the 1.2048 at the wave (i) low.

GBPUSD

GBPUSD 1hr.

GBPUSD 4hr.

GBPUSD daily.

I am looking at another interpretation of wave [b] today.
It is simply viewing wave (b) as a three wave flat pattern rather than a triangle now.
And wave (c) has rallied in five waves into todays highs.
Wave ‘v’ of (c) should top out with a break of 1.4165 and below 1.4239.
A decline back below 1.4000 again will signal wave [c] has begun.

Tomorrow;
Watch for wave ‘v’ to top out early tomorrow.
A break of 1.4239 again will invalidate this short term pattern.

USDJPY.

USDJPY 1hr.

USDJPY 4hr.

USDJPY daily.

I have switched to the alternate view of wave (i) and (ii) tonight.
The corrective decline off last weeks high is too large now to consider it as part of wave (i).
Rather now this decline is viewed as wave (ii) underway.

Wave (ii) hit the 50% retracement level of wave (i) at todays lows.
This is a typical retracement level for a second wave so we should see wave (ii) come to an end soon.
Wave (iii) up will be confirmed with a break above 109.79 again.

Tomorrow;
Watch for wave ‘i’ of (iii) of [iii] to push higher by tomorrow evening.
If wave [iii] up is about to begin this week,
then we are looking at a significant rally ahead possibly up towards the 112 handle.
108.32 must hold.

DOW JONES.

DOW 1hr.

DOW 4hr

DOW daily.

The market is pretty quiet today and I cant read a whole lot into it for that reason.
So far Fridays highs are holding and the three wave pattern higher into wave (ii) is still intact.

I am looking at the wave ‘b’ of (ii) low at 33840 as an initial signal level to begin wave (iii) down.
I would like to see wave ‘i’ of (iii) break below that level to turn the tide into wave (iii).

Tomorrow;
Watch for wave (ii) to hold at 34450.
Wave ‘i’ of (iii) down should begin soon and take out that signal level at wave ‘b’.

I would like to see wave (iii) get underway this week.
A drop off again tomorrow would be encouraging.

GOLD

GOLD 1hr.

GOLD 4hr.

GOLD daily.

After another spike higher today, gold has now traced out a five wave pattern in wave ‘v’ of (c).
The pattern has now filled the trend channel in wave (c) again.
And the sentiment situation is now creating the environment for a interim top to form.

We may be seeing the perfect storm setup here.
Three waves up complete as a flat correction.
A sentiment high with nothing but bullish stories.
So I think caution at a high is warranted here.

Tomorrow;
Lets see if wave (c) tops out the five wave pattern.
A drop back below the 1808 low at wave ‘4’ will be a good initial signal that the turn is beginning.

CRUDE OIL.

CRUDE OIL 1hr.

CRUDE OIL 4hr.

CRUDE OIL daily.

Drawing back towards last weeks high has caused another take on wave (c) of [ii] now.
The price pattern is still best described as a five wave move higher in wave (c).
And the price is now completing a clear five wave rally in wave ‘v’ of (c) this evening.
If we break 66.62 again tomorrow and then fall again,
that will suggest that wave (c) of [ii] has completed finally.

Tomorrow;
Watch for wave ‘v’ to top out and reverse after a break of 66.62.
A break below 63.10 again will signal wave (i) of [iii] is underway.

S&P 500.

S&P 500 1hr

S&P 500 4hr

S&P 500 daily.

The market has simply drifted off Fridays highs today,
and this is a little concerning given that I want the market to fall into wave (iii) down this week.
If the market rallies again tomorrow to take out Fridays highs at wave (ii),
then I may have to concede my bearish count.

Tomorrow;
So far the bearish impulse wave is still in place.
Watch for a drop below wave ‘b’ at 4085 again to signal wave ‘i’ of (iii) has begun.

SILVER.

SILVER 1hr

SILVER 4hr.

SILVER daily.

I have shown a different take on wave [c] this evening.
This involves a three wave rise rather than a five wave pattern.
So the overall pattern in wave ‘B’ is now a combination wave.

The rally today completes wave (c) of [c] of ‘B’ on the short term chart.
The pattern in wave (c) is clearly in five waves.
And the trend channel is now filled again to bring us to another possible turning point opportunity.

Tomorrow;
Watch for wave (c) of [c] to show signs of reversing into wave (i) down with touch of the upper trend channel line and then a drop back into 26.60 again.