God Bless you all tonight guys and galls!
Its done.
Another year is in the bag.

I will not be updating tomorrow night as it is new years eve.
I can’t say I celebrate the changing of the number on the calendar!
But I will be sitting by the fire with my wife,
with a drink in hand,
and we will be thinking about where we go from here in life.

I am not very optimistic on how the next year will work out to be honest.
Nobody ever wants a catastrophe to befall us.

But I feel like this is one of those Neville Chamberlain moments!
Peace in our time,
before all hell breaks open on us.

We will see for sure in time.
And in many ways I hope and pray that I am wrong.
But as usual, for better or worse,
I am built to sound the alarm.

EURUSD.

EURUSD 1hr.

EURUSD 4hr.

EURUSD daily.

EURUSD rose out of that triangle wave [iv] green in five small waves into the wave (i) high.
The action today is part of an expanded flat wave (ii).
The price is likely to fall again into 1.2250 to complete wave (ii) and then rally out above 1.2400 in wave (iii) of [v].

Tomorrow;
Watch for wave (ii) to hold above 1.2189 and complete an expanded flat correction.
A rally above 1.2310 will signal wave (iii) has begun.

GBPUSD

GBPUSD 1hr.

GBPUSD 4hr.

GBPUSD daily.

Cable is a market where nothing seems to fit these days.

The action over the last few weeks was interesting as a possible setup to turn the tide lower into wave ‘D’.
With a series of impulsive accelerations lower followed by three wave rallies.

But the price keeps challenging the 1.3622 high time and time again.
And I can’t ignore the alternate possibilities at this point.

The price has not broken the invalidation line this evening yet,
but a break of 1.3622 will confirm this new count showing wave (iv) as a triangle.

Tomorrow;
Watch for 1.3429 to hold and wave (v) to continue higher over the next few sessions.

USDJPY.

USDJPY 1hr.

USDJPY 4hr.

USDJPY daily.

The price fell below 103.28 as expected in wave ‘c’ today,
and we came close to breaking the key support at 102.87 also!
If we break that line,
then we can rule out the bullish count.

I have shown the alternate view for wave [v] green.
This is a larger three wave pattern with the alternate labels circled in red.

Tomorrow;
A break of 102.87 will rule out the bullish count for another while.
So that level must hold and wave (iii) up simply must rally above 103.88 from here.

DOW JONES.

DOW 1hr.

DOW 4hr

DOW daily.

Wave ‘b’ of (iv) is most likely topping out this evening,
with a small lower high now in place below the all time high at wave (iii) of [v].

Wave ‘c’ of (iv) should head lower again tomorrow and break the wave ‘a’ low at 30268.
Tomorrow is a half day session,
so it is possible that wave (iv) will have to wait until next Monday to close out completely.
And then we can set our sights higher again into wave (v) of [v] for the first few sessions of 2021.

Tomorrow;
Watch for wave ‘c’ of (iv) to drop again beginning tomorrow.
I am looking for wave (iv) to complete below the wave (i) high in order to classify wave [v] as an ending diagonal proper.

GOLD

GOLD 1hr.

GOLD 4hr.

GOLD daily.

There is no viable way to look at todays action in a bullish light in the short term.
Gold is still trying to build a second wave lower high either within wave ‘iii’ of (c).
Or as per the alternate count,
it may be viewed as a lower high in wave ‘b’ of (ii).
The price is expected to fall again into wave (c) or wave (ii) over the next week.
The main target I have for wave (c) of [ii] is for a break of 1800 again to form a bullish higher low at wave [ii] green.

Tomorrow;
Watch for a return to the downside again to begin wave ‘iii’ of (c).
The price should continue to hold within the downward sloping trend channel.

CRUDE OIL.

CRUDE OIL 1hr.

CRUDE OIL 4hr.

CRUDE OIL daily.

I think we are building a top here after todays spiky action,
and it still looks like a series of second wave lower highs are playing out here.
A decline back below 47.00 again will signal wave ‘iii’ of (iii) is underway.

If we look at the longer term view for a minute,
we can see a very pronounced bearish momentum divergence on the daily chart.
The top in wave (4) has been achieved with a complete abandoning of reality.
All that is happening is a rush of the crowd into another significant top.

Tomorrow;
Lets see if we hold below 49.00 and then turn lower again to begin wave (iii).

S&P 500.

S&P 500 1hr

S&P 500 4hr

S&P 500 daily.

I am allowing for the market to hit another high in wave ‘c’ of (v) over the coming few days.
This will trace out a clear five wave move off the wave ‘b’ low.
And that will open up another window of opportunity to complete a larger pattern and turn lower again into wave [i] down.

Tomorrow;
Watch for 3710 to hold as wave ‘c’ completes.

A break of 3660 again will favor the idea that a top is in place.

SILVER.

SILVER 1hr

SILVER 4hr.

SILVER daily.

The silver market is very quiet this week and I cannot add much to last nights update.
I want to see wave ‘3’ open up with a bang next week and accelerate back below 23.50 in a few short days.
That action will solidify the main wave count and bring us very close to the next big buying opportunity in silver.

Tomorrow;
Maybe wave [c] makes another lower high below 27.40 to complete wave ‘2’.
Either way,
wave ‘3’ down is coming our way soon.
A break of 25.40 will signal wave ‘3’ is underway.