We will do a brief video update tomorrow on the general state of the markets given we have elected Monthly Bullish Reversals in several currencies. While we have been looking for the euro to reach 116, we have now clearly extended the sideways rally given that the major low for last year took place in March 2015. May has been the main target in time on our arrays for a long time. It appears we should press higher into May (dollar decline). There is a potential that exceeding the 117 level could spark a rally up to the 125 level. This is rather serious for last year’s high was 12109; exceeding that high intraday would make 2016 a REACTION HIGH since we did not make a new low this year.
The yearly array in the euro warns that the turning points are 2016 and 2018 followed then by 2022. Additionally, 2016 is a PANIC CYCLE YEAR and we have not seen anything unfold with volatility just yet. We have the BREXIT vote in June. A failure for Britain to exit would perhaps create that last rally of euphoria that the euro will survive. Nevertheless, the fundamentals that hit in 2017 globally warn that the trend thereafter does not look very bright.
Such a move in the euro to exceed last year’s high would most likely result in a tremendous setup for a FALSE MOVE and the slingshot we see that appears to be unfolding from next year onward. Everything from oil, turmoil in Saudi Arabia, commodities (including metals) to stocks, bonds, and currencies, are all warning that we will see the crazy times ahead in trading where most will lose everything.