It looks like crude oil prices did not want to top out in our last reversal zone and are edging higher today (close to $48 - Jan. contract chart). Let's watch for a top in our next reversal zone (Dec. 22 - 30). If that top stays under $49, we will watch for a sub-cylcle correction to our original target area ($41 - $43) for a possible spot to buy. We may even first sell short at the top if the technical situation looks favorable next week. We are still on the sidelines of crude oil.
The U.S. Dollar Index seems to be near the end of its medium-term cycle. That means it could bottom at any time and start a a new cycle with a significant rally (new cycles always start off bullish). This is supporting our idea that the precious metals (esp. gold) are getting ready to turn down for a significant correction. Next week's reversal zone would be a good time for a bottom so we will watch for it then.