May 21, 2023

Eye of the Storm Podcast – Big Picture Update + Elliott Wave Update 5/21/2023 by Michael Filighera

Tonight’s Big Picture updates the SPX, NDX, 30 yr bond, 10 yr and 5 yr notes, gold, silver and the Dollar index.  Also included tonight is an Elliott Wave Update for the ES and NQ.  All roads continue to lead towards the ultimate top for Primary B waves in the equity indexes, Minor 5th waves declines in the 30 year bond and the 10 year notes, wave 2 corrections in gold and silver, with the Dollar index giving us a double-edged sword in terms of direction.

The major stumbling block and cause for concern remains the debt ceiling discussions between the WH and the House GOP led congress.  I discuss in some detail the implications of a default, which is truly a situation the markets and the US government should avoid.  It shouldn’t be used as a political tool to win an election, but that may not be the case.

The Elliott wave counts for the SPX and NDX continue to allow and suggest a finishing rally to complete the larger Primary B wave countertrend rallies.  I update the Elliott/Fibonacci relationships between waves 1 and 5 for both indexes.

The treasuries continue to be extremely volatile particularly the 30 year bond.  The EW count currently suggests a continued decline in bond prices with yields likely spiking higher.

Gold and silver took a tumble last week due the rise in the US Dollar – the EW patterns suggest a wave 2 correction is in play in both markets.

The US Dollar index presents us with stronger potential for a decline in the dollar which could ultimately drag the currency below 100.

I also give a quick EW update for the ES and NQ that fall in line with the analysis for the SPX and NDX.