Good evening all you fine people.

May the Lord of all creation Bless you tonight.

A few charts to begin tonight.

The EVERYTHING bull market.

Lots a VALUE available here in the market!

JPY cot positions; historic bullishness.

Crude oil cot; historic bullishness

USD index cot; historic bearishness

EURUSD.

EURUSD 1hr.

EURUSD 4hr.

EURUSD daily.

I think we are close to three waves up now done and dusted in the final wave (v) of [v].
This ending diagonal has been excruciating to endure!
But as with every over exuberant run in any market,
the end always comes when everyone is absolutely convinced that there is no end.
This statement is true for so many markets right now.

Tomorrow;
Watch for wave (v) to give way before the end of this week.
1.1922 at the wave (i) high, is still the main level to watch for a signal that the top is in here.
Initial support at 1.2056 – the wave (iv) low.

GBPUSD

GBPUSD 1hr.

GBPUSD 4hr.

GBPUSD daily.

Cable managed a new high today to rule out the previous short term count.

The pattern is still similar though.
Todays high came after a three wave rally within an ending diagonal pattern wave (v).
I can easily view this top as wave ‘v’ of (v).
And I am now looking for a break of the low at 1.3135 to confirm.

Tomorrow;
Watch for wave (a) of [a] to turn lower and break 1.3135.
I am looking for a five wave decline to begin the next leg down in cable.

USDJPY.

USDJPY 1hr.

USDJPY 4hr.

USDJPY daily.

We do have three waves down in place this evening in wave [v] green.
This decline in wave [v] did not break the previous low at 103.17- the wave [iii] low.
Although this could be a bullish fifth wave failure.
Meaning the sentiment is so stretched to the negative that wave [v] could not manage a new low.

We will have to wait and see,
but I am getting more bullish on the USD by the day now.

The COT data is just screaming extremes that we have not seen for a decade.
That alone is worth sitting up for.

Tomorrow;
The rally off the low is beginning to look impulsive.
lets see if we can get five waves up before before next week.

DOW JONES.

DOW 1hr.

DOW 4hr

DOW daily.

The DOW did not manage a new high today in wave ‘c’ of (v).
So I am now looking at the possibility for a larger wave ‘b’ pattern,
to trace out a larger three wave correction into the area of 29800,
and then a run higher into wave ‘c’ of (v) over the coming few sessions.

This pattern points to the possibility of a breakdown coming next week.
Five waves down in an impulsive decline will turn the tide on this one.

Tomorrow;
Watch for wave ‘b’ of (v) create a small double bottom at 29800 by tomorrow evening.

GOLD

GOLD 1hr.

GOLD 4hr.

GOLD daily.

Wave ‘c’ of (b) rallied in five waves this week to create a small lower high this afternoon.
this price is falling this evening off the high,
so I am looking for a decline into wave (c) to now continue for the next few sessions and complete on Friday.
The target for wave (c) lies just above 1800 now.
That will complete a large bullish impulse wave and a reasonable opportunity to get long,
before a rally in wave [iii] begins.

The alternate count is a little more bullish here,
that involves a smaller (i) (ii) rally already underway to begin wave [iii].
In that case,
wave (ii) will complete above 1820 and then rally again into wave (iii) of [iii].

Both cases involve a bullish setup here.
Things are heating up here in gold.

CRUDE OIL.

CRUDE OIL 1hr.

CRUDE OIL 4hr.

CRUDE OIL daily.

After one of the biggest rallies in crude in living memory over the last 8 months,
all of a sudden crude is such a hot topic in the media,
and such a hot asset to own coming into next year!

If we look at positioning in the futures market,
money managers have built up a top 4 long positions of the last decade over the last few months.
the other tops just happen to coincide with previous market tops.

Might I take the contrarian view on this setup if you don’t mind!

Tomorrow;
Wave ‘v’ of (v) has pushed out to a new high today and is now approaching the upper trend line of this diagonal pattern.
I think we may well hit that upper line this week,
and then I will look for a reversal back below the lower line again early next week to begin the turn off this high.

S&P 500.

S&P 500 1hr

S&P 500 4hr

S&P 500 daily.

The S&P did not manage a new high today in wave ‘c’,
but the market did hold onto the gains of the week so far.
So the pattern is holding in wave ‘c’ of (v).

I am allowing for wave ‘c’ to continue higher tomorrow and hit a new all time high before the end of the week.
And this evening the price is closing at the highs of the session,
so we are well on the way to doing that now.

Tomorrow;
Watch for wave ‘c’ to push up above 3722 to complete three waves up in wave (v) of [v].

SILVER.

SILVER 1hr

SILVER 4hr.

SILVER daily.

It seems a little too easy to get very bullish on silver at this point!
I am looking at a few options this evening to temper the mood.

Three different variations of a 1,2 pattern call for at least a decline back below 24.00 again over the next few days.
Wave (c) of [ii] is calling for a drop below 23.57.
Alternate wave (ii) of [iii] is calling for a drop below 24.00.
And,
Alternate wave ‘2’ red is calling for a drop below 23.00 to complete the largest 1,2, pattern.

We will see before the end of the week which count is most likely now.

Tomorrow;
Wave (b) has pushed the limits of where an expanded flat should go,
so I wan to see a drop into wave (c) begin tomorrow.