Tagged the open range, now downtrend resumes. A new low is likely (<1045).
EUR is targeting 0.91 in the downtrend - a crash in DB could be just another reason for EUR to go that low.
A flat correction with an ending wedge in C is complete or nearly complete. Wave 3 should start shortly. I expect this to be very fast and unfold together with the downtrend in EUR. (1-2 months).
The dowtrend in bonds is incomplete and in my view it is just starting. In order to retrace the ending wedge TLT needs to fall below 100 quite fast. The decline has resumed yesterday and should unfold within the next few months. Bonds is a multi-trillion dollar market - if a sell-off happens the only asset that can accommodate that amount of released cash...
The downtrend resumes, targeting below 1.17. Note that this is the last wave down for GBP: it should be traced out quite fast - possibly till mid-March, which should happen at the same time as for other currencies.
The targets for w3 are insane, but this is what the wave structure dictates. W5 should complete in the vicinity of 0.91.
Wave E is completed, confirmed by the reversal in other currencies. We still need to overshoot the prior high (1.45) so let's keep this as a target. Crude is almost done too, but one minor upswing is still possible, which means that USDCAD can still make a minor new low, but the chances of this are slim.
The Ending wedge which took almost 14 years to trace is likely over. Breaking below 7200 will reinforce this hypothesis. We should see the first impulse to the downside develop over the next few months. Breaking below 5494 should be the first waypoint. Please note the sheer immensity of what's ahead - not only the ending wedge has ended, but a giant multi-decade...
The ending wedge that started early 2016 is nearly complete, wave 5 is an ABC, and there's an ending wedge within its C wave. We are need to make one last top in order to complete the whole structure. Next week we are likely done.
Despite the immense rally in all indices, the end has never been closer than today. This is a really important top, and good shorting opportunities are ahead. Be prepared.
Here's the labelling of the most recent advance, one last w5 looks not done yet. Although this is not required, one last push may occur before month end.
I believe the downtrend in bonds is not over, bonds may still crash another 20% before entering a correction. This may trigger a very violent sell-off in equities.
On the weekly scale, this looks like an ending wedge. Wave 1 looks indeed very large compared to the rest, but so far we had 5 zigzags, and the advance is clearly a motive wave. So ED is possible. Suggestions of alternative labeling are welcome.
The move from 100 to 114 was corrective and is likely fihished. New lows are likely, 93..100 is the target region. Note that at the same time EURUSD will move down into 1.00, and USDJPY will go down to 100. EURJPY target is therefore at circa 100.
Here's a long-term view for GBP, and it's very exciting. WE are approaching the 0.886 retrace of the purple (A) wave - we have just one subdivision left in the downtrend. After that we may have a wild ride in GBP. The Pound is not the only one - the uptrend should happen in EUR, NZD, AUD and all other currencies. A lot of weakness of the dollar for the next year.
Entering the final subwave of the decline - a lof ot strength in GBP next year.