Almost there

BOTTOM LINE: Asset markets (Equities, Gold, EMFX) are living on a prayer. Chances are high that the top is very close (this week/early next week).

European stock market indices, illustrated here with an hourly chart of the French CAC40 are in the process of fnishing their fifth (and last) waves higher. At this stage, this process could end and reverse anytime.


This is a daily chart of General Electric, currently the sixth largest company in the US by market capitalization. The stock is also in the final stages of its fifth wave higher, which will complete a much larger corrective pattern higher, and set the stage for a substantial decline.

In FX, we have a bottoming USD. Below is a daily chart of the Brazilian Real against the US dollar. The chart looks quite USD-bullish.

Against the EURO, the USD is also in its final stages of weakness, shown below on an hourly chart of EUR/USD.