U.S. Dollar is coming down after US stocks stabilized and even recovered following FOMC Chairman Jerome Powell. As we noted yesterday, he was careful with his "policy outlook" and definitely he was not that hawkish as before. However, the CPI numbers will be an important indicator for the next direction of the USD.
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The S&P 500 has made a sharp reversal down from 4821 which can be part of a higher degree correction, but the question is if the correction will be deeper and lower to around 4500 or rather slow and sideways, like a triangle or flat. In either case, it's important to keep an eye on a current rise from 4580 which for now is still in three-wave so it can be limited recovery at around 618% Fib. Keep in mind that for a bullish sequence we need impulse up to around 4780/4800. Long story short; the market is in a neutral zone; we need more data to confirm the next direction. US CPI can be the catalyst.
S&P 500 4h Elliott Wave analysis
DAX is turning down in the 4-hour chart after a three-wave A)-B)-C) corrective rally, so seems like we may see a deeper decline now, at least in three waves A)-B)-C), maybe even back to the lower side of a range, ideally as big daily triangle or flat correction.
DAX 4h Elliott Wave analysis
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