ELLIOTT WAVE ANALYSIS - Latest Market Commentary
Stock Indices
23rd May 2026 - Both U.S. and European stock indices have reversed the previous week’s declines with prices returning back to the mid-month highs in defiance of losing upside momentum that’s maintained the AI### technology run higher from April’s lows. These uptrends can extend a little higher after next Monday’s U.S. holiday takes us through to a reopening session next Tuesday – but they’re on borrowed time. The latest Bank of America survey shows a giant leap higher in equity allocation over the last month – it’s now +50% overweight from +13%, the largest month-on-month increase ever recorded and the highest allocation since January 2022 – long global semiconductors … Read full summary in our latest report!
Currencies (FX)
23rd May 2026 - The US$ dollar index has traded inside a short-term holding pattern, an Elliott Wave correction during the last week although downside is expected to be somewhat limited ahead of a stronger dollar### going forward. The early-May low at 97.62 has provided the platform for further gains as minor wave c.’s five wave diagonal in upside progress from January’s low continues whilst remaining bullish holding above 97.62 – expecting another +3.5% gain over the next couple of months. Inversely, the Euro/US$ is trending lower as the 3rd wave within minor wave c.’s diagonal - remains bearish whilst holding bellow 1.1796 targeting 1.1078+/- within the next couple of months...Read full summary in our latest report!
Bonds (Interest Rates)
23rd May 2026 - US10yr yields have reached optimum upside targets for finishing intermediate wave (2)’s corrective upswing that began from the April ’25 low of 3.860 ending this week at 4.685. But will it now head### lower to begin wave (3)? Corresponding upside targets for the US2yr yield towards 4.224+/- are still short whilst DE10yr yields are definitely a long way off upside completion too. On balance, this would suggest there’s still more... Read full summary in our latest report!
Commodities
23rd May 2026 - The gold/silver ratio has remained fairly static over the last week following a strong reversal upswing that began primary wave C’s new impulse pattern from the previous week’s low of 52.70### ending into the mid-month high of 60.89. With direction confirming upside continuation during the next couple of months, that’s very bearish for gold and silver bullion. In the shorter-term however, a downward correction hasn’t quite completed which corresponds to gold and silver’s current… Read full summary in our latest report!
