Good evening, and Gods Blessings to you all tonight.

I want to mention just one article that I read the other day,

Extreme Positioning: Everyone’s Back In The Pool

The charts are very informative and pretty frightening, I’m afraid that we are setup just as we were back in January this year. With everyone chasing the mirage of wealth in tiny overbought pools of assets.

This will end in exactly the same way also!

Here we go.

EURUSD.

EURUSD 1hr.

EURUSD 4hr.

EURUSD daily.

EURUSD rebounded today to begin a correction in wave (ii).
Wave ‘a’ of (ii) is complete,
wave ‘b’ and ‘c’ should follow tomorrow and complete the correction below 1.1830 at the upper end.
Wave (iii) down will be set to go at that point.
And a break of the 1.1719 low at wave (i) will signal wave three is underway.

Tomorrow;
Watch for wave (ii) to complete in three waves and then return lower into wave (iii).

GBPUSD

GBPUSD 1hr.

GBPUSD 4hr.

GBPUSD daily.

Cable has rallied back into the previous high at wave [b] today.
The form of the move is casting a doubt over the short term count now.
The price must hold below 1.3081 at wave [b],
then return lower into wave ‘iii’ of (i) with a break of 1.2862 again.

Tomorrow;
Watch for wave ‘iii’ of (i) to continue lower and break 1.2862.
1.3080 must hold.

USDJPY.

USDJPY 1hr.

USDJPY 4hr.

USDJPY daily.

Wave [ii] will not let go of the reins yet!
The market took another dive into the previous fourth wave support again.
The price has now hit the 50% retracement in wave [ii] also,
so we are in that area for a reversal into wave [iii] to begin.

Tomorrow;
I want to see wave (c) of [ii] hold and then return higher into wave [iii].
A break of 105.62 again at wave (b) will signal that wave (i) of [iii] is underway.

DOW JONES.

DOW 1hr.

DOW 4hr

DOW daily.

The market is again falling today as earnings season gets underway again!
So far we can see only three waves down,
and the price has not overlapped any of the previous highs within wave [c] yet.
Wave (iii) of [c] topped out at 28345,
A break of this level will be a stay of execution for the bearish count.
But really I want to see a break of the wave (iv) low at 27656 to save the bearish count.

Again we hang in the balance in the stock market.

Tomorrow;
Watch for wave (i) to continue lower and develop five waves down.
The recent high at wave [c] must hold.

GOLD

GOLD 1hr.

GOLD 4hr.

GOLD daily.

We have a lower high in place and I am labelling this wave ‘ii’ of (iii).
This count suggests we have more downside ahead in wave ‘iii’ of (iii) over the coming days.
I want to see the price fall sharply off this level and break the 1872 lows,
but wave ‘iii’ of (iii) should easily fall below 1848 as shown.

Tomorrow;
The high of wave (ii) must hold at 1933,
wave ‘iii’ down should continue below 1848.
A break of 1882 will signal wave ‘iii’ is underway.

CRUDE OIL.

CRUDE OIL 1hr.

CRUDE OIL 4hr.

CRUDE OIL daily.

Todays rally in crude has shifted the action in favor of the alternate short term count for wave [c].
Although the idea of a (i) (ii) decline has not been ruled out today,
I think I will err on the side of caution now.

We cannot confirm that the top is in place for wave ‘2’ until we get a break of 39.27 again.
And that should happen at the next attempt in wave (iii) down.

Tomorrow;
Watch for wave ‘v’ of (v) of [c] to complete with a break of 41.70 and then a retun lower into wave (i) of [i] of ‘3’ should get underway.

The alternate count will be triggered of we head lower from here and break 39.27.

S&P 500.

S&P 500 1hr

S&P 500 4hr

S&P 500 daily.

As with the Dow,
we only have a three wave decline in place off the top at wave ‘2’ in the S&P.
This decline is welcome,
but it is not enough to confirm wave [i] of ‘3’ is underway,
and it also fits the alternate count at the moment.

Until we get a five wave decline and a break of 3340 again then that alternate count will loom large over me Im afraid.

Tomorrow;
Watch for wave [i] down to push below 3430 at the wave (b) high.
That action will favor the bearish idea now.
The high at wave ‘2’ must hold at 3548.

SILVER.

SILVER 1hr

SILVER 4hr.

SILVER daily.

The high of wave (iv) came in at 24.62 today and now that level must hold as wave (v) of [i] completes.
The price is falling again this evening off that high,
and that indicates wave (v) of [i] is now underway.

Wave (v) must break the low of wave (iii) at 23.85 at a minimum to complete wave [i].
and then we can look for a correction higher in wave [ii] at that time.

Tomorrow;
watch for wave (v) to complete with a break of 23.85.
That will complete five waves down in wave [i] of ‘5’.