The end of the US stock market is nearing

EUR/USD 30 min chart with short-term rising channel while MMD, MMW and MMM are pointing in the same direction...

P.S. I have conducted a free of charge webinar last Saturday in "Aurora" studio... there we have discussed such a scenario as the most probable one... here is the link to its recorded version for those who can understand Russian... https://aurora.network/events/155-posleslovie-k-geometrii-finansovykh-rynkov-s-igorem-toshhakovym

the eur/usd chart above corresponds well with the longer-term USDX chart... here on DXY we can see that the initial longer-term supportive line ( blue one here) held so far and the market is currently bouncing from it... at some point it might turn into a reversal diamond with the longer-term target located at below 78.92, which is a magnet point and a "must reach" level over some time in the future...

https://www.forexfactory.com/thread/post/2188079#post2188079

Hi Igrok was this projection abandoned already or still a possibility?

it's a long shot to make such an assumption at this time but it's still possible, I guess... it's not going to cancel the fact that 1.35 will stand to play its role as a magnet and a level of attraction (which will be reached eventually no matter what) but, since the timing is unknown to us and cannot be predicted in advance, we should not exclude any other possible scenarios and sequences... and there are several different ones... the main one is that DXY is now forming some sort of a reversal dual-diagonal diamond as it was previously described...but if it's actually not, then it would have to be reconsidered over the course of events in favor of two other possibilities... in first such a case it would rather correlate well with the idea of a potential diamond still being actually formed but becoming a continuation one... unlike single-diagonal diamonds it's not always possible to predict the direction of the breakout in advance... the second possible scenario would rather call for no diamond at all and instead we will have to make a projection on the upper border of this channel shown on the chart below to become a legit target of its own... however, in all those cases USD is likely to be now at the very bottom of the next positive wave which adds more credibility to the expectations for the US stock market to drop significantly because of the inverted correlation between the stocks and the buck...

Thank you Igrok, long shot indeed.
Below is are sketches on USDJPY, i wonder if they make sense,

Oh, i saw and read that, how come I forgot? thanks for pointing out Gabs.

I don't think so even as they seem perfect from the geometrical point of view... however both are built into some sort of a side-trend... it doesn't make they illegible but I wouldn't rely or trade on such a "formation" preferring something more academic when I see one...

thank you Igrok.

Hi Igor,

I know that you do not recommend to consider 1H timeframe, but could you share your opinion about DXY. Can the figure below be treated as a Diamond?

This one is not a Diamond=)

no, it's not a diamond... yesterday I first posted this picture on our telegram channel saying that the upper blue line is a magnet and will be reached and broken no matter what... it actually happened then later in the day...

Hi @Igor do you see the USDX heading further upwards than the 96 mark e.g. 100+ or do you think that the USD will run out of steam prior 96 ?

it's possible... especially considering that potential diamonds on the major indices such as DJI and S&P...

Hi Igrok,
if you have time will you please post a graph showing how the diamond forming on S&P looks like right now?
Thank you
Marc

HI Marc, this is my take on the Diamond situation for WS. USD appears to have some strength while WS needs to head lower making the diamond more valid if it can touch the lower points. @Igor may be able to provide some greater insight and corrections to this Rhombus artistry.

Thank you for your reply!
How do you draw the right side of the diamond?
- Marc

Hi Marc,
the opposite sides are the same angle and length. you may find this explanation useful https://www.mbacrystalball.com/blog/2015/11/13/quadrilaterals-properties-parallelograms-trapezium-rhombus/#:~:text=Properties%20of%20a%20Rhombus,%E2%88%A0B%20%3D%20180%C2%B0).

the parallel sides are of equal length and angle (usually) like all things you must know when to break the rules, which is what makes it an art form. you can draw a line very close to the left side on the same side (left side) and the same length and then move it to the right side. When you have 2 points defined for the right side, that is an upper boundary and lower boundary (often a top and bottom) you know where to start the lines from and they will intersect or join each other out of necessity on the right side.

hopefully the picture below with the 1 mark and 2 marks help you see

what about gold please tell

to me the monthly looks like it will go down, the daily looks like it might have some support early next week, maybe a better question might be what is the USD doing as its relationship to everything presently is key . what's your opinion on gold ?

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