Good evening everyone.

A simple chart to start the day.

What exists now is one of the biggest short positions ever built in the USD.

The market has simply written off the USD completely by dumping it and buying everything that is not nailed down.

We can see this in the metals market of late, and most especially in the stock market.

‘anything but the USD!’

It is lining up to be a perfect time to begin accumulating the USD I think.

And in the background the rot is growing,

Federal deficit spending contributed 41% of U.S. second-quarter GDP!

And then there is this!

And this:

On with the show.

EURUSD.

EURUSD 1hr.

EURUSD 4hr.

EURUSD daily.

EURUSD is flirting with the recent high and threatening tp break higher today.
That has not happened yet,
and the rally is still in three waves off the recent low.

In the bigger picture,
even if we see a final high in wave (C) to break 1.1914,
the odds favor a decline into wave (D) over the next month.

Tomorrow;
If we see a break of 1.1710 that will confirm wave [c] has begun.
Watch for 1.1914 to hold.

GBPUSD

GBPUSD 1hr.

GBPUSD 4hr.

GBPUSD daily.

Cable is really undecided yet as to where the pattern will unfold to.
I am allowing for the price to fall below 1.30 into wave (iii) soon,
and that should begin a larger decline in wave ‘D’ towards the 1.20 handle.

The only viable alternate now is that we have a triangle forming in wave ‘iv’.
A drop below 1.30 will rule that interpretation out.

Tomorrow;
Watch for 1.3140 to hold and wave (iii) down to begin with a break of 1.30.

USDJPY.

USDJPY 1hr.

USDJPY 1hr.

USDJPY daily.

USDJPY is the first pair to flip towards USD strength over the last few weeks.
But we are seeing a little hesitancy develop off the recent highs.

The price has declined in three waves off 107.04,
this indicates a correction so far.
But I am allowing for a larger expanded flat wave [ii] to trace out and complete at 105.20 this week.
Then we should be ready to rally up into wave [iii].

The alternate count is a little more bullish,
and todays decline is viewed as the final move in wave (ii) of [iii].

Tomorrow;
If we rally again tomorrow and break 107.04,
that will signal wave [iii] is underway.

Otherwise,
watch for wave (c) of [ii] to complete at or below 105.29.

DOW JONES.

DOW 1hr.

DOW 4hr

DOW daily.

Following the action today was very tedious indeed!
It seems like the market is moving within a triangle at the moment.
And if that is the case,
then we are still stuck in this ride higher in wave (c) of [c].
A triangle in wave ‘iv’ of (c) will allow for a rally again in wave ‘v’ of (c).
Then we can look down into wave [i] again.

Tomorrow;
Watch for this fourth wave to complete above 27680.
Wave ‘v’ of (c) has a minimum target at 28150.

GOLD

GOLD 1hr.

GOLD 4hr.

GOLD daily.

The rally in wave [b] has now reached the 62% retracement level of the previous wave [a] decline.
The size of the rally has ruled out the idea of wave [a] as a five wave decline.
And so I have altered the count to show wave [a] as a three wave decline.
This also suggests that wave ‘A’ at one degree higher will be a flat 3,3,5 pattern.

Tomorrow;
I expect wave ‘A’ down to remain in force for at least the rest of this week.
Wave [b] should complete soon and then wave [c] will fall to a new low below 1861.

CRUDE OIL.

CRUDE OIL 1hr.

CRUDE OIL 4hr.

CRUDE OIL daily.

Crude is slowly revealing its hand as the days go on.

The sideways pattern over the last week completed as a triangle today.
This is labelled wave (b) of [v].
And wave (c) of [v] is now underway out of that low.
Wave (c) of [v] should continue higher to break 43.60 at a minimum,
and then we should close out the overall ending diagonal pattern in wave [v].

Tomorrow;
Watch for wave (c) to trace out a five wave run above 43.58.

S&P 500.

S&P 500 1hr

S&P 500 4hr

S&P 500 daily.

The S&P is holding below the all time high in a tantalizing fashion again today!
It is as if a ‘peace’ has descended over the market!
The type of ‘tranquility’ you might experience after a job well done!
The losses of the March crash have now been wiped out.
And the market is returned to its zombie like state similar to last February.

Wave (B) is the ultimate ‘false hope’,
much like satan himself – it offers everything,
gives nothing,
and then takes everything from you in the end!

Wave (C) will be the reckoning to these new highs.

Tomorrow;
I am still waiting for gravity to re-assert itself in the stock market.

Wave [v] should manage a new high.
At that point the expanded flat pattern will be satisfied for wave (B) / [B].
And wave (C) will be the next step in the pattern.

SILVER.

SILVER 1hr

SILVER 4hr.

SILVER daily.

Silver is expected to move down into wave (C) this week.
Although there are still a few options that need to be ruled out before that happens.
It is possible that wave (B) will create a larger flat correction.
That will cause the price to oscillate around the 25 handle for another few days before completing a 3,3,5 pattern.

Either way,
The pattern in wave [2] demands that we move lower into wave (C) to complete a three wave correction.
Even if wave [2] only retraces 50% of wave [1],
that will see wave (C) drop into the 20.60 level to complete.

in short, there is more to come!