FXE (123.67) is slipping lower. It appears that the retest of the Head & Shoulders neckline is over and FXE is losing what little support there is left. Free-fall lurks below 123.64 and appears to be imminent.
Remember, the Cycles Model suggests that this decline may not be over until June 15-18. The interesting item is that options expiration occurs on June 15, so a decline during that week may provide the catalyst for a crash. Ms. Market was able to control her decline during the last options expiration. It may not be possible this time.
EFA (47.93) is coming dangerously close to its Head & Shoulders neckline. The correction above the neckline sports what appears to be a truncated wave [c], which is very bearish. Note that EFA is also on the “liquidity cycle” that I mentioned last night.
SPY (132.57) has crossed below the Crash Trigger on a Broadening Top formation and short-term trend support at 132.87. Today we may see SPY challenge hourly Cycle Bottom support and a Head & Shoulders neckline at 129.45. At approximately 128.50 is the last Crash Trigger of this complex triple Broadening Top formation and a free-fall zone to last year’s October low at 106.29. The “average” wave iii of (iii) target is 113.53, which may be exceeded.
Hang on to your hats!
GLD (149.78) has surpassed yesterday’s low and is also taking aim for the massive Head & Shoulders neckline at 148.60-148.80. This also follows what appears to be a truncated wave [C]. Not much more to be said.
TLT (125.32) is breaking out again today. While I am not entirely certain about the wave positions noted in the chart, I have incorporated a trendline that we must stay above as the final wave C of (5) rises higher.
UUP (22.89) is progressing toward its large neckline near 22.93. Crossing it will give UUP practically a new lease on life as its targets expand higher. The correction that bottomed at 22.39 on May 21 may be an early Primary Cycle low, but it might be helpful to anticipate another brief pullback as UUP reaches its next neckline.
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