Bonds dropped under 174^16 today to test deep wave II support and made an attempt to recover. Would be bulls need to base above 174^16 or endure a retest of 174^03.

Crude has been frustrating as of late. It has been stuck for a few days between resist at 41.35 and support at 40.60. Bears need CL under 40.60 to have anything to work with. While 40.60 holds I can’t rule out a test of 41.35 or a bit more.

The drop in DX today is a short term problem for the immediate bullish case. The form is murky now, might mean the at the wave [II] is becoming more complex and not yet complete. Best for bulls that DX bases above 93.25 and makes another attempt to push over 93.90.

Not clear if the bounce today in Euro is just a small bounce prior to pushing under 1.1688 or if wave [II] is becoming more complex. Immediate resist at 1.1791. The dominant cycle suggests bears will be in control till early November but the Lomb is projecting a short term cycle low.

Little real change in gold as it vibrates around the moving averages. I’m still giving the bulls a chance to get in a better bounce into early November.

SPX fell away from initial resist early in the morning and trended lower till near the end of the day. Nice, certainly the type of thing we want to see if they are finally falling in the first steps of [III] of c of (ii) but not clear that [III] down has started. Still possible, and I have a soft spot for, a wave (C) of [II] bounce on Tuesday. I will say after a possible bounce either right off the bat or after a drop to roughly 3400, the next move down should be forceful and make an attempt to challenge the September low.