Good evening to one and all and may the Lord Bless you all again this fine evening.

To start tonight, here is the current setup in the futures market for the EURO, does this look like its a little extended now?

And now for crude;

Does this look in any way toppy right now!

On with the show.

EURUSD.

EURUSD 1hr.

EURUSD 4hr.

EURUSD daily.

As you can see on the chart above,
the futures market is at the most divergent position that we have seen in 10 years.
The market is pretty mush full on bullish to a degree never seen.
And this comes on the heels of the biggest rally in two years.
Something smells wrong with this!

It is a close call now between the main alternate and the ending diagonal fifth wave within the triangle wave (C).
Given the size of the bullishness in the market,
I am nearly inclined to favor the alternate view at this moment which is shown on the 4hr chart.
the only thing stopping me is the very un-impulsive look to the recent rally.

Tomorrow;
If the price falls back under 1.1922 at the wave (iv) low,
that will signal we are at an end to this rally phase,
I am looking for another lower high to form off this level to begin wave (D) down.

GBPUSD

GBPUSD 1hr.

GBPUSD 4hr.

GBPUSD daily.

Is cable finally going to flip this week??

The decline today came off a fifth wave high in wave (c).
And the structure looks pretty impulsive to the downside so far anyway.
At this point I want to see an impulsive break of the previous lows which formed at 1.3260 and 1.3194 to add some weight to the possibility of a turn lower.

Tomorrrow;
watch for a lower high to form below 1.3439 at the wave ‘v’ high in wave ‘ii’ pink.

USDJPY.

USDJPY 1hr.

USDJPY 4hr.

USDJPY daily.

USDJPY is holding the higher low for another day today with the probability rising in favor of the bullish count.
I cant say that we have five waves up complete in wave ‘i’ pink just yet,
I would like to see a clear break of 104.75 at wave (i) to call that complete.
For the moment,
I am happy to see the rising trend line intact and a bullish pattern building.

Tomorrow;
Watch for wave ‘i’ to complete with a break of 104.75 and wave ‘ii’ to hold above that support trend line.

DOW JONES.

DOW 1hr.

DOW 4hr

DOW daily.

The DOW is inching higher off the lows of the session this evening after dropping in wave ‘ii’ pink today.
The pattern now has another higher low complete at wave ‘ii’,
and now we should see a rally in wave ‘iii’ of (iii) of [v] over the next day or so.

If wave ‘ii’ is now complete,
then wave ‘iii’ should see the DOW out to a new high by tomorrow evening.
the target for wave (iii) lies in the area of 30867.
This is also the initial target for the overall rally in wave [v].

Tomorrow;
Watch for wave ‘ii’ to complete above todays lows and then wave ‘iii’ to rally out to a new all time high.

GOLD

GOLD 1hr.

GOLD 4hr.

GOLD daily.

Wave (a) of [iv] is topping out this evening,
and at this point it seems like we have a five wave pattern complete in wave (a) also.

If wave [iv] is going to trace out a zigzag pattern,
then we must see a decline in wave (b) tomorrow.
Wave (b) must fall in a three wave pattern,
and complete above 1764.
And then I will be looking for a rally in wave (c) again as shown.

Tomorrow;
The rally today is still in line with the main wave count,
although we are getting a bit close to that wave [i] low at 1849 for comfort.
If that level is broken,
then I will begin to look more seriously at the alternate count,
which shows the recent low as the complete wave (4) correction.
Maybe we are closer than I thought now!

CRUDE OIL.

CRUDE OIL 1hr.

CRUDE OIL 4hr.

CRUDE OIL daily.

Crude completed a wave (iv) correction at todays lows.
Wave (v) took over and then pushed back up towards that 46.00 handle again in an impulsive manner.
The pattern seems to have completed three waves u[ so far.
todays top is labelled wave ‘iii’ of (v),
with wave ‘iv’ and ‘v’ left to complete the pattern.

Tomorrow;
Watch for wave (v) to complete with one more push above 46.25 again.

The low at wave (iv) came in at 44.00 even,
A break of this level again could well mark the turning point of this rally.

S&P 500.

S&P 500 1hr

S&P 500 4hr

S&P 500 daily.

The S&P did not hasten in the end by rallying hard above 3700 today,
but I think we are not far off completing this pattern either way.

Todays decline is now viewed as wave ‘ii’ of (iii),
with a rally to a new all time expected in wave ‘iii’ of (iii) starting tomorrow.
The low of wave ‘ii’ lies at 3642,
so that level must hold tomorrow to avoid a larger correction developing in wave ‘ii’.

Tomorrow;
Watch for wave ‘iii’ of (iii) to push out above 3700 on the way to 3722 at the larger target level.
I expect wave (iii) will hit that level before the end of the week if this pattern holds up.

SILVER.

SILVER 1hr

SILVER 4hr.

SILVER daily.

Well silver is holding up well today after completing five waves up in wave [i] green.
I am now looking for wave [ii] to fall in three waves over the coming few days.
The decline off the high can be viewed as waves (a) and (b) already complete,
we will have to wait and see if a third wave down develops in wave (c).

The target area for wave [ii] lies at the 22.80 level on the lower end.
This level marks the 62% retracement of wave [i].

Tomorrow;
Watch for a three wave correction to complete in wave [ii] by the end of this week.
Then we can look at possibilities ahead for the rally in wave [iii].