 Hi folks this is Basil Chapman sitting for Tom O'Brien. I usually do the Tiger Technicians show 10 o'clock to 11 o'clock AME every day and I also have the open and cold Danny Margaret newsletter. Let's look at the three o'clock timeframe price. The Dow is down 700 points at 29,383. Just went right through the 30,000 millennium level that I thought would be a very important level to hold. Nope just went right through. What we're looking at here is let me just quickly do this pattern then you'll know exactly what I'm looking at. You see this pattern this expanding cone rising lows and much higher highs and then it comes down normally when it fulfills an up move going to at least four or five higher peaks when it comes down it could retest the left side low but usually it doesn't go under that for very long before it bounces but look 29,653 was the low of the 17th of June earlier this year had a fabulous rally from 29,653 all the way to 34,281 that was what exactly two months later 8,1622 and then we came tumbling down you see all these little H patterns that were failing and now we've got this huge extension to the downside. So as I'm looking at this with the Dow down at 29,455 you can see a pattern that I talk about very often we call it the dreaded H pattern because if you take out the left side low you can go quite a bit low you have two bars sometimes three they wish to try to get back above that left side low that's the arch in the weekly chart being repelled from the shaft wave inside track repellent zone right there we've come down and you can see this monthly chart has started the leg C to the downside. Now what's very interesting here is that if you look at the S&P the S&P has down at the 36,73 level but it's 36,38 I believe it was 36,38 I should know that I've spoken about it all day 36 there it is 36,38.15 was the low of the week of the 17th of June very sharp rally to the 42,40 what was that 40 I think was 43,25 level and then what happens is it comes down but so far it hasn't taken out that left side low and you can see the weekly chart is the technicals are particularly indicators are failing and what you've got in the weekly chart is finally there's an S and that says that the nine period moving average has finally turned underneath the 14 period moving average we've still got a whole week to go for it to try to turn up again so this is a very important moment we'll do the QQQ right now the QQQ is the NDX 100 Invest QQQ Trust Series so I can find it for the Nasdaq 100 and here we are going to the Chapman Wave inside track it should be a pro-palant zone not a repalant zone so this whole area into the 267 area is really important to hold in the next few days and I'm going to talk about the next Sunday night session going into Monday in a moment but here's a leg each of the downside the Chapman Wave the the H pattern that we're talking about it's sharply lower it's gone a one to one to the downside and the IWM down five at 166.37 and 162.48 was the low of June it hasn't taken it out yet and the monthly chart is arched over now we need to go to gold gold is down very sharply down 30 dollars and 1651 now what we're looking at is for the first time in quite a while let me open up this weekly chart and you'll see something very interesting you'll see that although gold is held extremely well concerning what the dollars dollars in a multi-decade high the gold is still holding pretty well except it's at the 1651 level and it says because it's taken out this key left side support going back to about August in the 1720 area this is going to be very important because it together with silver it's acting very poorly silver over the last week I've been saying silver is holding a lot better than gold all right let's go to the the dollar because there are a lot of there are a lot of things we want to talk about we also want to talk about what can happen on Monday we are forming a pattern that says there's a good chance Monday or Tuesday we could make some kind of a look well the dollar is up at 113.12 up a dollar 84 I should mention we've been long since 2018 and the 90 area here it is just a magnificent move to the upside but it is damaging it's hurting the multinationals can imagine what profits are like with the dollar so strong so what we're looking at is the dollar I've got it in a leg seat means that sometime next week we could get some kind of a pullback so far it's extremely strong if you look at the euro USD euro dollar currency pair oh it's just tumbled it's broken all the left side supports and this is going to be interesting as well because this is a divergence that I haven't seen anyone talk about yet the US dollar Japanese yen usually follows the trajectory of the dollar they don't necessarily go one for one to the upside or the downside but then kind of parallel one another however 146 the US dollar Japanese yen currency pairs so the yen went to 145.90 this is the continuous contract on the 22nd of September that's yesterday unlike the Dow which is screened to another high this is showing a stalling motion now I'll try to put it together with a volatility index just before we go to a break and what we're looking at here is the volatility index is in a leg D in the Chapman methodology it is up a twin and it hit 32 31 a little earlier on it's a 31 36 this is different to other patterns because once again it hasn't done that very often when you look at the monthly chart but look at the weekly chart you see there 38.94 that was the high what was that back in March I believe at the March low yeah and at 38.94 that was February February the week of the fourth since then we've made lower highs and I've got a pattern that I call the Chapman inside track repellent zone look how many times how does the how does the price know that in a diagonal pattern it's got it just constantly hits a particular level and then reverses I mean I can understand horizontal when you say 120 but when you're coming down in fractions look at this we went right to the green line the breakout line today and now we've pulled back just a little bit if we close very solidly green this will be the first time in a long time that the weekly chart on a Friday has closed this high in a green pattern there was a moment when it did that back in early May and then the week of the 6th of May it made a high of 36.64 before turning down so that in fact will take me to uh let me just check what the time is yep just check in the time that'll take us to um the TLT which is the bonds and the bonds made lower lows today yet again leg E in the in the daily chart and the yields are speeding to the upside that's really important but look at this economically the crude oil is saying what we need a recession for sure you don't have to call it an official recession it's down below 80 at 78.82 there's so much to discuss when I get back we'll talk about the potential for some kind of a low Monday what we would look for if there was going to be a low and what we should perhaps think about over the weekend