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we have some critical short term patterns to follow in the markets.
Patterns that may lead to big moves in stocks, crude, the metals, and even in the FX market.
So without wasting your time,
lets get into it.
EURUSD seems to be following the flat correction idea for wave (ii) brown so far.
The price spiked higher off initial support at the wave (i) low into a possible wave 'c' of (ii).
The minimum target remains at the previous wave 'a' high at about 1.1665 to complete.
At that point we will have another bearish signal complete in EURUSD.
Watch for a rally into the upper trendline at 1.1665 to complete wave 'c'.
A further break of 1.1527 will signal that wave (iii) down has begun.
Cable spiked higher again today which has complicated the short term count slightly.
Wave 'iv' of (c) completed a running flat at the low of the session of 1.2896.
And todays rally is now labelled wave 'v' of (c).
The price reached the upper trend channel line and the previous wave 'b' high at 1.3045.
And has dropped slightly off that level again.
If we get a drop below 1.2784 again,
that should signal that wave (i) of [iii] has begun.
Watch for an impulsive decline off the upper trendline at wave [ii] green,
and a lower high in a 'i' 'ii' pattern.
USDJPY has drifted higher today without an impulsive form.
It is possible wave '2' pink is underway off Fridays high.
Wave '2' pink should create a three wave correction, and complete above 110.38.
Wave '3' will be confirmed with a break of 111.83.
If the price breaks below 110.38,
that will trigger the alternate wave count and a larger wave [ii] grey will continue lower into around 108.00.
For now the short term setup is positive,
watch for a break of 11083 in wave '3' of (i) of [iii].
DOW JONES INDUSTRIALS
I have moved the short term wave count up by one degree today,
This accounts for an extended second wave correction at todays high in a possible triple combination wave (ii) grey.
The action over the last few sessions fits well with a correction,
as the structure is choppy, overlapping and sideways in nature.
The price dropped off sharply again this afternoon in a possible wave (iii) down.
The price is back at 25885 coming into the close.
A break below this level in wave 'i' of (iii) should switch 25885 from support to resistance.
Watch for further declines in wave (iii) grey.
Wave 'ii' should create a lower high before accelerating lower in wave 'iii' of (iii).
GOLD has failed to push higher yet in a possible wave 'iii' brown.
1189 is holding the price for now as wave '2' pink completes.
If we see a rally above 1207 tomorrow,
that should signal wave '3' of 'iii' has started.
While a break of 1217 will confirm wave 'iii' is underway.
Watch for a break above 1206 to rule out the alternate count and confirm a rally in wave '3'.
U.S CRUDE OIL
The short term pattern is holding up so far in crude.
Todays rise may have completed wave 'iv' pink.
And the price is declining again this evening in a possible wave 'v'.
A break of 66.86 cash will confirm wave 'v' pink.
The short term alternate count shows the possibility that wave (ii) might develop into a larger structure off the recent low.
A break of 68.52 will trigger this count.
Watch for a decline below 66.86 in wave 'v' of (i).
US 10 yr Treasuries.
Treasuries continue to contract in range today
after a sharp decline on Friday in wave '3' of 'iii'.
This looks like a triangle correction in a possible wave '4' of 'iii'.
The price should drop again in wave '5' of 'iii' towards the target at 119.00.
This level is where wave 'iii' reaches equality with wave 'i' pink.
watch for wave '4' to complete below 119.81 and for wave '5' of 'iii' to carry prices lower.
Silver continues the contraction in a possible wave '4' grey today.
The price still needs one more dip below 13.99 again to complete a five wave structure in wave 'v' of (c).
Once that happens,
I will switch focus to the upside again in wave in a possible large degree wave '3' red.
Bullish resistance lies at 15.00, the previous wave 'iv' pink.
An impulsive break of that level will signal that the dark days are over for silver.
13.63 must hold as wave '5' of 'v' completes.
I stepped up the wave count in the S&P by one degree also today.
The price is failing at the 2890 level in a possible wave (ii) grey.
Initial support at 2863 is the level to watch for a decline into wave (iii) grey.
If this count is correct,
we should see declines for most of this week as wave (iii) carries the price back towards the 2800 level again.
Watch for a decline below support in wave 'i' of (iii).