Good evening to one and all.

David Rosenberg;

I was told on Fast Money just now that inflation is going to be very sticky. It’s only sticky because how the CPI is calculated. The PPI has services too but not as flawed an index and the YoY trend is back to 2.3%. Does this chart look sticky to you??

https://twitter.com/bullwavesreal

EURUSD.

EURUSD 1hr.

EURUSD 4hr.

EURUSD daily.

EURUSD is not managing to rebound into wave ‘c’ yet this week.
The price has been trapped at the 1.07 handle for the last few days,
And wave ‘b’ has extended lower than I expected.
I am beginning to question this wave ‘ii’ expanded flat idea because of that action,
even though this count is the best fit pattern at the moment.

As it stands,
the main wave count for wave ‘ii’ has not been ruled out just yet after a bounce off the session lows again this evening.

Tomorrow;
Watch for wave ‘c’ to trace out five waves up towards the wave ‘a’ high at 1.0830 again.

GBPUSD

GBPUSD 1hr.

GBPUSD 4hr.

GBPUSD daily.

Cable followed the script almost perfectly today.
the top of wave ‘ii’ reached 1.2446 a the high today and now the price has turned lower again this evening.
If weave ‘ii’ is now complete,
then we should see wave ‘iii’ of (iii) make serious progress lower over the next few days.
Wave ‘iii’ should break the 1.22 handle with ease in this scenario.

Tomorrow;
watch for wave ‘ii’ to hold at todays high of 1.2446.
Wave ‘1’ of ‘iii’ should retrace most of the rally in wave ‘c’ as shown.

USDJPY.

USDJPY 1hr.

USDJPY 4hr.

USDJPY daily.

USDJPY is moving in a corrective manner this week and because of that I think wave (iv) is now underway.
Wave (iv) should complete in the area of 138.70 after a three wave decline.
And I want to see the high at wave [i] hold at 137.78 as wave (iv) completes.
If that level breaks again that will add a question mark to this wave count again.

Tomorrow;
Watch for wave (iv) to continue in that corrective path for the next few sessions at least.

DOW JONES.

DOW 1hr.

DOW 4hr

DOW daily.

The DOW has turned lower today to retrace half of the recent rally off the wave ‘1’ lows.
I am suggesting that the market is tracing out a three wave pattern higher into wave ‘2’ now.
And we should see another lower high below 33650 complete this week.

All of this slow progress lower may be frustrating,
but it is leading to a point of no return when the acceleration point into wave ‘iii’ of (i) of [iii] is hit.
That wave should fall back into the 32000 level to complete.

Tomorrow;
Watch for wave ‘2’ to complete three waves up near 33400 over the next few days.
Once the wave ‘1’ low is broken again at 32580,
that will signal wave ‘3’ of ‘iii’ of (i) is underway.

GOLD

GOLD 1hr.

GOLD 4hr.

GOLD daily.

Gold did make a very slight new low this afternoon to complete wave ‘5’ of ‘c’ of (a).
And now this evening the price has bounced back above 1950 again to signal wave (a) is complete.
and wave (b) is underway.
Three waves up in wave (b) is on the cards here now.
With an initial target for wave (b) at the 50% retracement level of wave (a) at 2007 again.

Tomorrow;
Watch for wave ‘a’ of (a) to complete near the 1985 high of wave ‘4’ black.

CRUDE OIL.

CRUDE OIL 1hr.

CRUDE OIL 4hr.

CRUDE OIL daily.

A sharp drop today confirms that wave ‘c’ of (b) is now underway.
The minimum target for wave ‘c’ has been met with the price breaking the low of wave ‘a’ at 69.34 this evening.
The pattern for wave (b) is an expanded flat correction,
and that suggests wave ‘c’ of (b) will trace out a five wave decline to complete a typical 3,3,5 internal pattern for the correction.
If we see a break back above 71.00 again that will signal wave (c) has already begun.

Tomorrow;
Watch for wave ‘c’ of (b) to trace out five waves down to close out this wave (b) pattern.
A break of 71.00 again will signal wave (c) is underway.

S&P 500.

S&P 500 1hr

S&P 500 4hr

S&P 500 daily.

A new high in wave ‘5’ of ‘v’ of (c) of [ii] completed this morning,
and then the market reversed off the high to close the session lower this evening.
It is too early to tell if this is a valid reversal signal again.
But I am looking for that exact thing to happen this week for sure.
If we get a solid follow through to the downside again tomorrow then we can talk about the possibilities.

In terms of the short term count,
there is no other viable way to view the recent action at all.
The continuous overlap in the pattern and sharp retracements off new highs all points to a culminating rally phase.
A momentum reversal is also overdue now on the daily chart.
So lets see if that can happen this week.

Tomorrow;
Watch for wave ‘v’ of (c) to hold.
A five wave decline again will open up the possibility of that reversal building.

SILVER.

SILVER 1hr

SILVER 4hr.

SILVER daily.

Silver popped off the low of wave (b) formed early in the session.
And I am now suggesting that wave (c) is underway off that low.
The price may have completed wave ‘i’ of (c) at the high today,
and I have shown a possible path for prices over the rest of the week with a five wave rally leading towards 24.00 again by the end of the week.

Tomorrow;
Watch for wave (c) of [b] to progress in five waves as shown.
The minimum target for wave (c) lies at 23.40 with a break of the wave (a) high.