I’ve been expecting a stock market correction for a few weeks now. It may or may not have begun on Friday. We will need to see some follow through this week before we can say for sure. At some point I expect a big whoosh down. It’s how these extreme momentum moves often end.
Gold also appears to be moving into a cycle low. When that big whoosh comes we should know whether gold is still in an A-wave or whether the B-wave has begun. There is even a possibility (although remote) that gold could still be consolidating before another leg up in the C-wave. That scenario is dependant on what the dollar does.
More in the weekend report.
Gold’s four wave structure: