Bonds on track attempting to base above 173^29. Next step is to recover 174^24.

Nice drop in CL today could signal the start of [C] of ii. Ideal that any bounce be held by resistance at 39.65 and 39.95 though a deeper retrace wouldn’t be a real problem. The dominant daily cycle suggests net lower till late this month.

I’ve switched over to the alternate count in DX where the advance from the early September low to the September high is a leading diagonal wave [I] and the drop is a wave [II]. Form so far looks like three waves which is consistent with a wave [II]. DX traded in a small range today trapped between 92.91 and 93.25. I lean to DX climbing up out of this hole with the turn up in the dominant cycle. First step for bulls is to recover 93.25.

Here in the Euro, I’m using a different count than in DX that looks better for this currency though it could work in DX as well. In this EW count, I’m treating the low in September as a (B) wave and the rise as (C) of [II]. Euro has spent the last couple days bumping up against resist at 1.1840. Would be bears need Euro to drop under 1.1735 for confirmation.

Not much to add to gold. Gold is trying to hold around the daily moving averages and grind up through resist at 1933.60.

The S&P 500 tested some initial resist this morning and reacted a bit to it but intraday cycles supported a rise but admit to being a little surprised by how much it powered up. Stepping back it wasn’t that out of character on the daily charts but intraday felt like a mini short squeeze. The Wave 59 9-5 study is suggesting exhaustion on the next candle if it makes a minor new high. The Lomb Periodogram is certainly signaling a high should be near. Likewise, the dominant daily cycle suggests a topping process between now and early next week.