Stocks and Gold Update
Stocks - A triple-flat correction or a series of 1s and 2s ?
The following chart pretty much sums it up. The structure of the decline is either a series of 1s and 2s under the bearish P3-type count OR a correction wave which appears to include three fractal-like expanded flats.
It'll be difficult to tell for sure which structure is playing out until the "flash-crash" low is taken out. However, there have been positive divergence between price and RSI at two wave degrees as indicated on the chart.
Gold - also a triple-flat correction ?
Interestingly, the structure of the sell-off in Gold resembles that in the stock market. We may also have a triple-flat corrective structure in place. The first chart below offers a bigger picture near term count for Gold where the current decline is assumed to be a fourth wave. The second chart below gives a squiggle count of the triple-flat structure.