Bonds broke under minor support at 175^31 last week to retest the low from late August and support at 173^16. I still have difficulty thinking thinking the wave ii correction is complete and we are witnessing the early stages of wave iii down from the March high. I think it highly likely that bonds will bounce from near here to recover 175^31 and likely retest 178^13 over the next two or three weeks.

Crude has been chopping sideways for five weeks now. I see this as the middle part of a developing wave ii which should be due for turning lower in the last leg relatively soon. Bears need under 39.31 as a first step and later under 37.10 to stop out short term bulls.

Weak performance by DX last week as it was unable to get on top of 93.85. I still think there is a chance for a higher low to form but would need to get to it this week and hold 92.93.

Not a particularly good look for the prospects of lower in Euro as it is acting like it is rising from a small fourth wave and may retest the high made in early September.

Gold is closed last week just under first resist at 1930.05. If they poke over for a day or so, assume the will continue on toward 1978.95 and perhaps even 2013.17 before making the next attempt to move lower.

SPX closed last week on the high of the week near resist at 3490 and a channel harmonic. I’m still thinking this is a ‘b’ wave bounce though admit that that last week was strong.