Market view

Well well , now we got more of a rally than I thought. I thought we would stop around 1200-1210 and then plunge back down, but either way I still think that the top for wave B is made. I believe that we should be starting our wave C down which should be a panic selling and ugly move down over the next 1-2 weeks.

Overall I have to view and what will determine which way I am going to play this is the PRICE/ACTION. IF we get some good selling with nice volume and pressure, that would indicate that wave C is about to start. If we just go slowly down with no volume to 1197-1200 area as I indicated, then its most likely a backtest of broken resistance and then we are heading higher to 1230-1250.

So how I am going to play it ?

I will play it to the downside, watch for this area 1197-1200 and if we close above here I would go long markets. Until then I would short, cause either way I think a pullback IS comming.......EVERY SINGLE TIME we have been so much extended this short term, we had a pullback over the next 1-2 days. I dont think this will be any different.

Take in mind that this end of wave B could be the backtest of the broken trendline we had some weeks back and this could be making a LOWER HIGH than previous top if we dont go higher.

Remember in right side my new setup with 30 min and 60min both indicating a red and down day today.

Overall I got bullish euro/usd, but I am going to get bearish EUR/USD again and BULLISH the dollar at 80. Today when I am writing USD is just above 80, where I think we will get a nice rally from again...

BUT I have an alert on GOLD and I think it looks VERY bearish and I am expecting a BIG move down in gold from here at 1394 currently when I am writing. I think the big move down in gold IS comming from here and it will be ugly .. very ugly for gold. I would short gold if I could and the chart has a nice HS pattern and beginning to go down on right shoulder here. So a massive move down in gold should be comming next I predict



Best of luck to all and good trading