Week Ahead

The week that past played out more or less as expected with EURUSD dropping - although according to my alternate count. There is now a possibility of a C wave correction up back the old target of just over 1.47. Which would be the 61.8 fibo retracement of the 5 wave move down.

There are many more 5 waves down add this is only the first of many. The next wave down will be a "humdinger" - wave 3's typically are.

The ALSH has very neatly tested its support line and one can only but expect a bounce from here. I would not expect it to make a new high but stall out below its previous high. Possibly getting as high as 25300-500. This is all in synchronicity with the FX Markets - the inverse correlation at this stage between the USD and the stock markets is hard to ignore and until this relationship breaks down lets not ignore it.

Shorting the coming bounce could be a very profitable exercise as wave 3 down will be a fast wild ride down - crunching through the rising support line and causing technical havoc so to speak. As stated in a previous mail - overwhelming consensus at this stage is for a correction and then marching north once again. My sense is this "correction" (as everyone expects) is rather the next leg down breaking past previous lows.

So expect some volatility and a bounce in the coming week - yes dead cats can bounce - typically not very high though. Once this bounce runs out of steam and momentum dies down look to short aggressively and LOOK OUT BELOW

Have a good trading week

Kick