Hello all,

May the LORD of all creation Bless you all tonight,

Here is an interesting quote I saw today from David Rosenberg and it really describes the situation we are in, a completely Schizophrenic economy indeed!

EURUSD.

EURUSD 1hr.

EURUSD 4hr.

EURUSD daily.

The triangle pattern for EURUSD was invalidated today by a break of 1.1880.
That level marks the high of wave (a),
And also the minimum target for wave (c).

Now that wave (c) has broken through that wave (a) high we have a possible completed expanded flat correction in place for wave [iv].
Wave (c) has not traced out five waves up just yet.
So that allows for a little more upside in this pattern.
But not much.

Tomorrow;
Watch for wave (c) of [iv] to complete five waves up and then reverse into wave [v] down.

GBPUSD

GBPUSD 1hr.

GBPUSD 4hr.

GBPUSD daily.

The rally off the low at wave ‘1’ has already retraced into the 61.8% level today.
This retracement is a common target for a second wave retracement,
and now that we have reached that level it seems possible that wave ‘2’ is already done at todays highs.

If this count is correct,
then wave ‘2’ is closing out this evening and wave ‘3’ down should begin soon,
possibly even tomorrow.

Tomorrow;
Watch for a possible reversal off that Fib level at 1.3990.
A drop below 1.3719 again will signal wave [i] of ‘3’ is underway.

USDJPY.

USDJPY 1hr.

USDJPY 4hr.

USDJPY daily.

The price did fall 109.58 today and that is the initial signal that wave (iii) of [iii] is now underway here.
I am still a little suspicious regarding the main count,
And I have not discounted the alternate bullish count at all yet.

But as long as the price keeps moving lower,
then we can stick to the script for wave ‘C’ of (2) and a target in the area of 107 again.

Tomorrow;
Watch for wave ‘iii’ of (iii) of [iii] to break 109.06 to confirm this count.

If the price rallies again and breaks 110.28 that will heavily favor the alternate count.

DOW JONES.

DOW 1hr.

DOW 4hr

DOW daily.

The Dow has broken higher out of the triangle pattern in wave ‘iv’ of (c).
that confirms the correction as a triangle,
and now we can track wave ‘v’ of (c) higher into that target area again.

The initial target lies at 35557,
this is the level where wave (a) and (c) reach equality.
There is a slightly higher target at 35650 and that is where wave [v] reaches 50% of wave [i].
This level is interesting mainly because of the clustering of the targets in such a tight bunch.

Tomorrow;
Watch for wave ‘v’ to continue higher into 35550 again and then I will look for a reversal to begin again.

GOLD

GOLD 1hr.

GOLD 4hr.

GOLD daily.

I am beginning to lean towards the alternate bullish count for gold today after a sharp rally has invalidated that triangle possibility from last night.
I am not quite ready to jump all in just yet
as I think there is still a very real chance that we are simply tracking higher in a flat correction in wave [iv].
That is still my main assumption here,
and this will lead to one final sharp decline into wave [v] of ‘C’ of (4).

AS for the alternate count,
If this rally continues higher to break 1855 again,
Then wave [iv] will have broken the wave [i] low and that will rule out a clean five wave decline for wave ‘C’.

That action will heavily favor the bullish alternate.
I think we will know soon enough which count is correct.

Tomorrow;
Watch for wave (c) of [iv] to complete below 1855 and then reverse into wave [v] down again.

CRUDE OIL.

CRUDE OIL 1hr.

CRUDE OIL 4hr.

CRUDE OIL daily.

Wave [v] is fast loosing momentum here as we inch higher in a very stepwise fashion now.
This final wave [v] should break 76.44 to complete the pattern.
Until we see five waves up complete in wave ‘5’ blue,
there is little chance that this rally will break.

Tomorrow.
Watch for wave [iv] to hold at 70.90 again.
wave [v] should continue higher and trace out five waves up.

S&P 500.

S&P 500 1hr

S&P 500 4hr

S&P 500 daily.

A new all time high this evening just because what else would you do on a Thursday evening eh!
Wave ‘c’ is progressing towards that upper trend line now.
And wave ‘v’ of (v) is just a whisker below reaching equality with wave ‘i’ at the session high.
Equality happens at 4438,
it is an interesting level but I am not hanging any great significance on it at the moment.

Tomorrow;
Watch for wave ‘c’ of ‘v’ to trace out five waves up and complete at about 4470.

SILVER.

SILVER 1hr

SILVER 4hr.

SILVER daily.

Both metals caught a nice bid today and the vertical rally for silver is interesting for sure.
But I am still viewing the action this week as a correction to the upside in wave (ii) until proven totally wrong.

You all know that I am a longer term bull on the metals.
But I just don’t think we are out of the woods yet in terms of this corrective phase.

I am looking at wave (ii) as an expanded flat correction now.
And this does explain the fact that wave ‘b’ fell in three waves to a new low.

Also todays highs hit the 62% retracement level and that seems to have stopped the rally in its tracks so far.
We will see if we get an impulsive wave lower building off this level tomorrow.

Tomorrow;
Watch for wave ‘c’ of (ii) to complete and wave ‘i’ of (iii) to drop back into 25.00 again.