4:29 am. Good morning. IWM’s corrective wave looks done. It needed one more corrective wave degree and I think we completed it yesterday.

Likewise for the financials. Both the XLF and IWM show classic sideways consolidation patterns. Really perfect. This is a great place to buy here. One small wave ii today and then I think next week is going to be to new highs. It is the long weekend with MLK day on Monday and the MMs might wait for Tuesday to buy in.

/gc finds resistance at 1197.80. If we can close above that, that would be a good sign. I remain cautious at this juncture on gold as it has been negatively diverging and the dollar looks ready to rally off what might be a corrective wave 4. Similarly TLT looks ready to sell off as well with the capital moving out of bonds and back into stocks, especially with the corrective wave on IWM and the financials completed. On the flip side, this wave v could morph into a wave 3 on the mining stocks. I am very curious to see how it will play out today.