As I have already mentioned in my previous post, we are seeing a major distribution across different sectors – financials, tech, commodities. This process takes awhile, but I expect to see some moves down by the end of next week.
The current price action is very similar to the one we’ve witnessed in the beginning of June (see the chart). If this is the case, we might be looking to some downward action (80-100 points) and another rally to 1150-1200 level by year’s end. But I am only guessing here.
As for EUR/USD, you can see that the trend up is slowing (see numbers 1,2 on the chart) meaning we will break one way or another. I am betting that we are going to 1.4750 at least.
GOLD is the only thing that worries me. It hasn’t shown any signs of weakness, and that symmetrical triangle breakout to the upside looks even more possible than several weeks ago. I guess, we just have to wait and see how it plays out. One possibility is that we’ll get a fake breakdown to 900-910 and then a violent move up.
