The S&P 500 indeed find an early morning low yesterday as expected but instead of only bouncing a few points and being trapped for the day, it pushed up to test the November 9th high. It still has the look to a lower high in the making and thus have a bias to lower. However, if 2578 SPX holds as support, a rally to attempt to fill the overhead gap is possible. Ideal in my view is that 2578 SPX is tested but only results in a shallow bounce.

Overall think wave iii has been set or in the process of being set which results in a week or two of sideways to lower prices before pushing up into the low 60’s. The complicating factor is that I’m not certain of the micro count and can’t rule out a modest new high before the wave iv depicted on the chart takes place.

While I still have a bullish overall bias in the dollar, I am allowing for a somewhat deeper retrace before pushing past the 95 handle.

Euro is either working on a wave ii retrace or if you think the last two months was just a corrective pullback, a new high. I can argue either case but am putting the bearish count in front, probably just my bias. Will have to see how they behave against each resist on the chart.

Prefer to see a steady drip lower in gold until under 1253.90 at which point the decline should accelerate.

Allowing for a tiny bounce in bounds before resuming lower.