Financial Markets on the Edge
Stock-Markets / Financial Markets 2016 Dec 20, 2016 - 02:40 PM GMTI begin the day by discussing an error in my Elliott Wave structure and how it was remedied. You may recall that on a larger scale, the USD is in some type of Broadening Formation. I figured that Wave (C) of [4] hadn’t completed yet and I had calculated the structure in a way that still gave me upper limits on how far it could go.
USD is pressing that limit. In addition, it probed higher in yet another wave that told me that this rally is not corrective, even though the lesser parts appear to be. It has become a Broadening ending Diagonal that may be complete between 103.28 and 104.24. It has achieved that target last week.
If the past two trading days produced a reversal pattern, as it appears, then it may be prepared for a strong decline a early as today. However,
This may be the reason for the hesitancy in the SPX until now. Both indexes appear to have given reversal patterns, but only produced mild declines so far.
Since SPX has held support at the Trading channel trendline, one must always allow for the potential for an additional rally. The maximum limit on SPX is 2285.92. However, should the USD decline today, the SPX is likely to follow it.
TNX is hesitantly higher, but may change on a dime.
Whatever is going on may produce some large moves in the next three days. Let’s see what happens.
Regards,
Tony
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