Good evening to you folks,

God’s blessings to you all tonight.

US Manufacturing Surveys Signal Weakest Growth In Over 2 Years, Prices Paid Plunges

Continuing Jobless Claims Hit 5-Month-Highs

EURUSD.

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EURUSD daily.

A drop off Wednesdays high has pretty much confirmed the wave count for wave ‘iv’ and ‘v’.
The price fell quite sharply today and this action is in line with a drop into wave ‘v’ down.

If this count for wave (v) blue is correct,
then it looks lie we are close to forming a significant low very soon.

Wave ‘v’ should break the low of wave ‘ii’ at a minimum.
And wave ‘v’ will reach equality with wave ‘i’ at 0.9837.

Tomorrow;
Watch for wave ‘v’ of (v) to complete five wave down and complete near the lower target level.

Next week I will begin the hunt for another reversal pattern out of the wave (B) lows.

GBPUSD

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Cable took another step lower today with a similar bounce towards the end of the session again.
If this is a decline in wave ‘iii’ of (v),
then the internal pattern for wave ‘iii’ is not yet complete.
The action has too many internal retracements to count as a clean five wave pattern yet.
In this case,
I want to see more downside again tomorrow to complete wave (v).

There is a bounce coming into wave [iv],
but wave (v) of [iii] must complete satisfactorily first.

Tomorrow;
Watch for wave ‘iii’ to turn lower again to complete five waves down.
The larger wave (v) also suggests another drop below 1.1400 to complete that pattern.
So there is more work to be done here.

USDJPY.

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USDJPY daily.

USDJPY is reaching higher again this evening wave ‘v’ of (v) of [c].
The larger pattern in wave [c] is very close to completing now,
but wave ‘v’ pink needs another correction and rise to complete a five wave pattern itself.
I suspect wave ‘v’ will tag the upper trend channel line near 141.00 again before completing this wave.
And once complete,
wave ‘C’ done should be ready to collapse the price again.

Tomorrow;
Watch for wave ‘v’ of (v) to complete a five wave pattern and fill out the trend channel again to complete.

DOW JONES.

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I think we are now close to a low in wave (i) blue after todays action.
Wave ‘v’ can make one more low to complete five waves down off the wave ‘iv’ high,
but even then I think the rally in wave ‘a’ of (ii) will happen quickly.

I have marked the low at 31630 as signal level for wave ‘a’ of (ii).
If we break above 31630 I think that will be enough to signal wave (ii) has begun.

Wave (ii) should retrace higher in three waves next week,
and I am looking at the area between wave ‘iv’ at 32370 and wave ‘i’ at 32760 as a target range.

All this leads us to a critical level at wave (ii) of [iii] of ‘3’.
And then next step after that is wave (iii) of [iii] of ‘3’.
And that is the point where the world realizes that something is seriously wrong with the market/economy.
But its too late then!

Tomorrow;
Watch for wave ‘a’ of (ii) to break 31630 to signal the larger wave (ii) correction has begun.

GOLD

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Wave ‘3’ of ‘iii’ came close to hitting the minimum target at 1685 today.
The price has bounced slightly this evening.
This may be the beginning of a correction higher in wave ‘4’ of ‘iii’.
but I do think we will see a clear break below 1680 again in wave ‘5’ of ‘iii’ as shown.

Each day brings us closer to that final low for wave [v] of ‘C’ of (4) in the area of 1650.
This pattern can be viewed as a mirror of the USD charts above.
A weaker USD will bottom the gold chart and begin the rally into wave (5) up.

Tomorrow;
Watch for wave ‘iii’ to create another new low by breaking 1680 again over the coming days.
This will lead to a correction higher in wave ‘iv’ next week.

CRUDE OIL.

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Crude is inching lower today to create a new six month low,
and has now wiped out all of the post war gains from February onwards.
Now that is not a headline that fits the inflation narrative is it.

I may be a little naïve or too early to the party here,
but I do think NG will perform a similar type of reversal over the coming months also.
Once a western recession kicks in full steam,
and we are almost there on that front,
there is no way energy markets can sustain the lofty heights reached lately.

Then the resource rich nations will loose their sugar high and com crashing down also.
Its a pretty simple dynamic in my mind,
lets see if it works out that way eh!

Tomorrow;
Wave ‘iii’ of (i) will hit a low tomorrow I suspect.
And then we should see a consolidation in wave ‘iv’ before wave ‘v’ breaks below 84.00 again to complete wave (i).

S&P 500.

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I am a little more confident that wave ‘i’ of (iii) is now in place for the S&P at todays lows.
The price has bounced off the low at 3904 in a reasonable impulsive move.
and that is enough for me to at least look for the beginning of wave (ii) blue as shown.

WAve ‘ii’ should form a three wave correction higher over the next week.
The initial target area for wave ‘ii’ lies between 4070 and 4108.
and when that correction completes,
we will be at a similar cliff edge scenario staring down into wave ‘iii’ of (iii) of [iii] for the following week.

Tomorrow;
Watch for wave ‘a’ and ‘b’ to create a higher low over the coming few sessions.
Wave ‘iii’ may even be complete by the middle of next week if all goes well here.

SILVER.

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Wave ‘iii’ of (iii) is complete at the session lows now.
So now a consolidation in wave ‘iv’ of (iii) should hold the action around 1780 over the coming few sessions.
A final drop in wave ‘v’ of (iii) could break the 17.00 handle again when complete.
wave ‘v’ will have to wait until next week if this count is correct.

Tomorrow;
Watch for wave ‘iv’ of (iii) to correct sideways and hold below 18.13 at the previous invalidation lows.