All Central Banks are in balance sheet expansion mode and US equities finished strongly today with all but the NAS making new highs and closing at them: S&P 1782 and Dow 15822. And, even though the NAS failed to do so, it came within a point of making one and closed right there at 3965. Utilities were up for the day but did not confirm the moves to new highs. The Dow Transportation did however confirm the moves, topping and closing a few points off its new all-time high at 7141. Barring Utilities, which are still in a corrective move off of the June 21st low and just under the 61.85 retracement of the trend wave move off of its high at 537, the rest of the indexes are now poised to make further impulsive moves to finish off fifth waves on our preferred counts. However, take note that the recent corrective moves are shallow and these recent new highs are still in corrective zones and will be until 138.2 Fibonacci levels are passed in third wave sequences.
The buck topped this week at 80.73 and has since pulled back to the 80.79 at 7:48pm Wednesday NY. The Greenback was strong today against the Euro and the Swiss Franc and weak against the Yen, Pound and Commodity bloc. The USD seems to be in a corrective flat which could head down as far at 80.38 before moving back up again in a third wave at minuette degree.
Interest rates pushed up this week in a fifth wave at subminuette and pulled back today to 2.72 and closed there. The move up from the Oct 30th low at 2.47 is very impulsive leaving this recent move in a corrective mode which could end up dropping to the 61.8% retracement of the move up which also happens to be the previous fourth wave—strong support. From there, the Yield should head up in a third wave to test the 2.98 top.
Both Gold and Silver moved past the 88.75 retracement of the move up from the Oct 15th low leaving me with the immediate bearish counts on the metals. Gold in particular is now retracing off yesterday’s low at 1261 which was right at a nice Fibonacci convergence zone. This retracement should be a wave one of a three wave correction wave two at minuette degree which could carry to the 1323. The Bucks and Metals retracements should stall together and head on to complete third waves–with the USD bullish and Gold bearish.