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DOW JONES INDUSTRIALS

30 min

4 Hours

Daily

My Bias: market topping process ongoing
Wave Structure: Impulsive 5 wave structure, possibly topping in an all time high.
Long term wave count: Topping in wave (5)
Important risk events: USD: Building Permits, Housing Starts, Crude Oil Inventories, FOMC Meeting Minutes.

The rise in wave (ii) grey has stretched the limits of the corrective rally interpretation.
With that in mind I have shown an alternate idea for wave (ii) grey.

This involves a flat correction three wave structure,
The price would decline again into support and then rally to meet resistance.
Lets see how this works out.

On the 4hr chart you can see that 21498 is the initial support,
This is the low of the previous wave (iv) grey.
A break of that level will be a far bigger confirmation of a turn into the bear market.

For tomorrow;
Watch for todays high to hold, labelled wave (ii) grey at 22060 on my chart - (22023 cash).
If the price again declines in a five wave structure,
That will signal wave (iii) has begun.

GOLD

30 min

4 Hours

Daily

My Bias: Long towards 1550
Wave Structure: ZigZag correction to the upside.
Long term wave count: Topping in wave (B) at 1550
Important risk events: USD: Building Permits, Housing Starts, Crude Oil Inventories, FOMC Meeting Minutes.

GOLD declined into the 61.8% Fibonacci retracement level today.
Wave 'ii' brown did infact extend lower as suggested.

So far the bounce off todays lows looks to have halted the decline.
If we get a break of the high of wave 'b' at 1285 it will signal wave 'iii' brown has begun.

Wave 'iii' is projected to reach 1332 at the 161.8% Fibonacci extension.

For tomorrow;
Watch for 1267 to hold, and a rise into 1285 to signal a turn up again.