EUR/USD - Is in an ideal position to challenge the neckline support near 130.10. If this support breaks the next target will be near the 126.00 area.
Since red wave 1 ended at 130.33 we have seen an expanded flat developing and we could easily have seen the end to this expanded flat at 131.44 a break below 130.85 will confirm the test of 130.10
EUR/JPY - Here too we have all the signs that the correction from 111.43 is over, but we need support in the 106.25 - 106.50 area to protect the downside for a break above 107.83 and more importantly 108.70 to confirm that the correction is over and the next rally towards 120.50 have begun. Otherwise a break below 106.25 will open up for a move closer to 105.80 before the next rally sets in.
Dr. Copper - After the failure break above 391.00 we are now sitting just above support at 370 and it should just be a question of time before this support breaks for a decline towards the neckline support near 312 any break below here will be very bearish for Copper.
VIX Index - Here too we have seen a break above the first resistance and is ready to challenge the next important resistance near 19.60 a close above here will clearly raise the volatility and call for a continuation higher towards 21.85 as first upside target.
Dow Jones Industrial - Here we have broken below the first support at 13.006 and we should soon see a challenge of important support at 12.735 any break below here will increase the downside pressure and call for a decline towards 12.508 and likely closer to support at 12.265.
Junk Bonds (JNK) - Here too we are seeing downside pressure building. On the daily chart we can see a S/H/S top has been activated upon the break below 39.18 and we should now see a decline to 36.20 where we will find strong support, but longer term we should see JNK move below the ending point of wave [A] at 34.10.
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