Gold - There is the potential for a bullish inverse head and shoulder (iHnS) pattern in the ST if PoG can stay above 1762.46. Here is what is would look like:
The 61.8% and 78.6% fibo retrace levels often provide a buy zone for wave Cs that are part of a suspected triangle. PoG has entered that zone a second time. Moving below the 78.6% level puts the triangle pattern in jeopardy, but does not kill it unless price moves below the level of wave A, in this case 1702.
Silver - Still inside a bullish triangle pattern while above 38.70. A double zig-zag pattern can be observed moving down from 43.35 in early August, a move back above 40.90 soon should confirm the end of the double zig-zag for wave C. If 38.70 is taken out however, then the Bullish triangle is disrupted and much further downside is possible, a zone from 34.00 to 37.00.
USD - The dip last week appears to be part of a wave 2 down corrective pattern. The opening gap this week may be filled before proceeding higher into a 3rd wave up.
USD might fiddle with a convergence of channel lines before moving higher:
Key Supports are at the 20DMA and the 61.8% fibo level. Moving below these levels would put further upside potentials in jeopardy. So far the 10EMA has been lending support while the 3/10/20 is in a Bullish alignment. When the 10EMA acts as support, the trend is usually in an larger impulse to the upside.
Copper - I have mentioned before that copper was bearish while under 4.25 and that lower-lows were likely in the works. Here are the reasons why:
Looks like wave 5 truncated in an ending diagonal with an impulsive drop off producing a potential 'copper top' for the stock market. Wave {ii} up was clearly a 3 wave corrective pattern up right into the Support/Resistance (S/R) zone between 4.20 and 4.25. As you can see the 3 wave pattern stayed inside the base channel (blue), text book 3 wave correction. This provided a very low risk shorting opportunity of a few cents, very rare for the copper market to see such a low risk entry. Now the potential for a third wave down could target 3.00 to 3.10 very soon.
Crude - From previous reports I warned of a break down below the bearish ascending wedge pattern while below the green trend-line. Price of Oil (POO) has put a toe over the lower wedge boundary today:
Dow - I called a top early on Friday, and it looks like it's going to hold. However a gap down this morning may see at least a partial fill before proceeding lower. A daily close today below 11,247 would produce an inside double close key reversal pattern, very bearish. Such a move should lock in the right shoulder of this pattern I showed last week:
There is an abundance of technical evidence that a deflationary juggernaut is about to break down the markets. I'm sure that the Central Banks (CBs) are clearly aware of these technical pictures. They need to turn on a fire hose of liquidity soon to prevent this from happening. A shock and awe amount of liquidity, piddly amounts are not likely to be enough.
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