ELLIOTT WAVE ANALYSIS - Latest Market Commentary
Stock Indices
31st January 2026 - U.S. stock indices sold-off whilst the US$ dollar and US10yr yields shot up earlier today (Friday) after U.S. President Donald Trump said he has nominated his choice to lead the Federal Reserve, as Kevin Warsh. Warsh, a former Fed governor, is seen as an advocate of lower interest rates, whilst also considered to be one of the less radical choices among the various names that have been raised and is perhaps more cautious on heavy monetary stimulus than others. It initially pulled the S&P 500 and Nasdaq 100 lower although into visible corrections, then stabilised into the closing session. This is consistent with another push higher next week as part of the concluding sequences of an ending-diagonal pattern that began from December’s lows. The completion… Read full summary in our latest report!
Currencies (FX)
31st January 2026 - U.S. president Trump nominated Kevin Warsh to succeed Jerome Powell as the next Federal Reserve chairman, ending a prolonged odyssey that has seen unprecedented turmoil around the central bank. Warsh is considered an ally to Trump insomuch he’s on-board with interest rate cuts although not to the sacrifice of economic monetary stabilisation – this aspect sent the US$ dollar higher, pulling currencies lower. The US$ dollar index was already hinting of directional change earlier this week having traded down from November’s high of 100.39 as a proportional zig zag ending at 95.55 last Tuesday – today’s additional advance is confirming directional … Read full summary in our latest report!
Bonds (Interest Rates)
31st January 2026 - > Kevin Warsh’s nomination to succeed Jerome Powell as the next Federal Reserve chairman is seen as an advocate of lower interest rates, whilst also considered to be one of the less radical choices among the various names that have been raised and is perhaps more cautious on heavy monetary stimulus than others. This news initially sent the US10yr yield higher today, but it soon relinquished that rally, turning down again and importantly, remaining below recent highs, maintaining the onset of a new multi-month downtrend. In Europe, the DE10yr yield remains at a sensitive crossroad – the yield has remained below integral short-term overhead resistance levels of 2.913… Read full summary in our latest report!
Commodities
31st January 2026 - Wednesday’s report commented that gold’s recent exponential advance would be ‘hard to sustain’ and sure enough, we see upside exhaustion into targets of 5651.00+/- with an actual print-high Thursday at 5569.40 followed by today’s collapse of over $900 dollars! Headlines are ‘Bullion bloodbath as gold heads for worst day in decades, silver worst day ever’ and ‘Silver plunges -30% in worst day since 1980, gold tumbles as Warsh pick eases Fed independence fear’. Gold and silver have confirmed peaks for intermediate wave (3) with wave (4) corrections already underway – short-term five wave impulse declines have unfolded from Thursday’s … Read full summary in our latest report!
