by Avi Gilburt
This past week, much was written about expectations regarding the ECB actions. The wide consensus was that the Euro was going to tank and the metals would tank with the Euro. However, that is not exactly what we saw.
Rather, the metals reacted exactly as we had expected. They pulled back in their 4th waves, held their respective support levels, and began an a-wave rally in their respective 5th wave. On Friday, they pulled back in what I am counting as a b-wave in their 5th waves, and I am looking for upside continuation in the coming week to complete their 5th waves.
In fact, the metals may be setting up to top by the time the Fed makes its announcements on Wednesday, and may begin their expected declines at that time. While many will blame the decline on the Fed, we will know better, especially if they complete their c-waves in their 5th waves of their respective ending diagonals.