USDGBP

I have maintained bullish views for USDGBP - because of the triangle in wave 4 and wave 5 up has clearly started and there should be more upside. 0.85 from 0.78 now is what i would expect in wave 5 where 5=1.

Copper

Copper starts wave ii down at minor degree with the 201dma at 2.16 and 61.8% at 2.12 as support levels.

Dow

Dow - Has been in a narrow range for many days. If it manages an upward breakout above 18400 then we may consider it is making wave 5 of an ending pattern up to 19000. Staying below 10400 bearish possibilities remain current.

The Big fight

The Big fight in world equities is protecting the lows held since 2010. At the Top looking at a world index [ADR index in this case] on a long term monthly chart from 1998 shows that the top in 2008 formed a H&S pattern whose neckline was a major resistance in 2014. It was also the 66% retracement mark. Now after the fall from there completed 3 waves down it held an important shelf support and has so far rallied in 3 waves up in a channel retracing 50% if wave 3. So it appears appropriately set up for a retest of the shelf support, a break of which would be wave 5 down of this leg and would be a Thumbs down to the greatest Global Monetary Fight, to keep this from happening.

So if the world index is about to collapse you wanted to be invested in everything India that has nothing to do with anything around the world because Indian companies are completely insulated. Right?  

Euro

Is the recent jump in the Dollar restricted to the GBP or will Euro join in. Euro has support at 1.11 and 1.108, if those do not hold then it may give up and retest the blue larger retracement at 1.095

Infosys Update

Infosys -  Sept low is at 1009 high is 1068 which are the immediate support resistance levels. Remember I noted the wedge formation last year from where it fell in 5 waves in A. The rising trendline from 2009 is at 966, The 2015 swing low is at 932, and 2014 low at 723. and 61.8% of the entire rise from 2013 is at 845. These are levels to keep in mind. Daily and weekly MACD continue to decline ahead of the results season.

Small Caps

Small Cap index did not close the month down like the other indices and although we broke the 40dema the quick recovery makes it appear like a false break for now. The index took support at the lower end of a rising channel as shown below and till it holds the line the madness in small stocks remains s wonder to behold.

Gold Bugs Index

The Gold Bugs index broke the recent lows. We are in the first serious correction for Gold mining stocks. The index shows we may have started wave C of 2 down which should end in 5 waves. we are in wave iii of C so a few more legs to go. Once we complete wave C down then the next move up should be a major 3rd wave for this sector.

US 30 year T Bonds

Yesterday's bump up in bonds was unusual as it was on the back of comments by a Fed member. So you need to see follow up selling and a further rise in yields. If that happens then it would impact everything else this was just a one day blip.