Bonds are up into a good area for a lower high to form for ‘b of (b)’. Primary view is a drop into early next year in ‘c of (b)’.
Promoting the alternate count in crude to the new primary, that wave (b) is set and now in the early stages of wave ‘(c) of [v]’ lower. While above 54.90, I’d like to see a small bounce take crude up to around 57.90 or 59.40 before breaking under 54.90 in the next step lower.
DX has been a little frustrating this year, not quite breaking up and not really retracing much. This very well could be a precursor to a squeeze up into middle of next year.
I still have reservations on the details of the Euro count but the theme of breaking lower looks correct. The question is do we need a small bounce first or just accelerate lower? A small bounce would be welcome but not required.
Gold had made some progress for bears but needs to take the next step and break under 1488 followed by 1449.70. The next fast cycle inflection is next week which I’m penciling in as an inversion for a lower high which would mean downward pressure on prices till middle of December.
I remain bullish in SPX so as to get at least one more high and perhaps even two as depicted in this chart. Cycles point to mid October and the end of December as possible inflections which I’ve penciled in as highs. Prefer 2955 SPX hold as support though a test of 2912 would not be disastrous to the theme.
