Good morning everyone, I hope you enjoyed your weekend and welcome to another volatile week.
Metals are moving sharply to the downside, while stocks are also coming under pressure, so it looks like there is more capitulation happening, especially in metals. Still, when we see such moves early in the week, markets can stabilize in the following days, as once prices drop significantly there are fewer sellers left, which can lead to short covering rallies.
For now, though, metals and other assets may stay under pressure, as the dollar index is trying to recover from the 99 support that we highlighted before. Ideally, that was a completed wave four, so we should now be looking for further gains into wave five this week, which should push to new highs, meaning above 100.56, especially if we see a clean break out of the corrective channel.
On the other hand, a move back below 99 would suggest a more complex correction and would delay the bullish outlook.
GH
Make sure to join today’s free webinar on YouTube where we cover most of the markets
Become a premium member
Get daily Elliott Wave updates for US Single Stocks, SP500,DAX, GOLD, SILVER, CRUDE, FX, CRYPTO, etc. or apply for unlimited access to the Elliot Wave educational videos.