The Pre-Market is mildly higher. SPX still has to finish Minute Wave [v] of Minor Wave 2. The entire Cycle from the 1811.52 top to today’s high will take 43 hours at 11:00 am. The larger degree Cycle Model agrees.

ZeroHedge reports, “As we noted earlier today, if there was one piece of news that could tip the scales away from a December taper announcement, it was a November inflation number that came in below expectations. Which it did: the headline November inflation print came in unchanged, on expectations of a 0.1% increase for the month, and up 1.2% for the year, below the 1.3% expected. However, before you BTFATH, note that core inflation - the Fed's preferred metric - actually was higher than expected, with prices ex food and gas, rising 0.2% in November on expectations of a 0.1% increase.”

BKX may already have finished with its Minor Wave 2 late yesterday afternoon. There is news out this morning that may roil themarkets, starting with BKX.

(ZeroHedge) Yesterday afternoon, Zions Bancorp, Utah's biggest lender, stunned the financial community with a regulatory filing in which it announced that as a result of the final Volcker Rule implementation, it will need to make some very dramatic changes to its balance sheet, which would also have a follow through, and quite adverse, impact on its income statement.

This may be the catalyst for a sell-off in equities, starting with BKX.

Gold sold off to 1229.60 in the futures market this morning. Even though it has bounced since then, it is still below Short-term support at 1238.61. It has already begun Minute Wave [c] of Minor Wave 3. Don’t be fooled by the labels on the waves. This wave may be more powerful than the decline last April 16.

ZeroHedge reports, “Once again the precious metals market is moving in a highly efficient EKG-like manner - this time to the downside. As the US markets awake, Gold has been hit with heavy selling, retracing all of yesterday's gains, and Silver the same after some overnight shenanigans as Europe opened. The fits and starts with which these markets trade is remarkable - yet we suspect tomorrow will bring even more. Notably this drop in the PMs is also accompanied by further weakness in Bitcoin, a sell-off in bonds and USD strength (the latter of which suggest taper concerns).”

The Minor Wave 3 target for this Complex Head & Shoulders decline is 986.00, due in mid-February. The lower Cup with Handle target at 778.00 is due later next year. That will only complete Intermediate Wave 3. Intermediate Wave 5 is yet to come.

Regards,

Tony

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Disclaimer: The content in this article is written for educational and informational purposes only. There is no offer or recommendation to buy or sell any security and no information contained here should be interpreted or construed as investment advice. Do you own due diligence as the information in this article is the opinion of Anthony M. Cherniawski and subject to change without notice.

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