My chart last week showed momentum waning and DJI perhaps reaching a turning point. After reaching major resistance DJI started to retreat albeit very slowly. Today DJI closed quickly the gap created from the open after what appears an initial 5 wave down. If correct DJI may aim for the other gaps on the downside in wave (3). Next week should be interesting. Good Luck
Following on from my last FTSE update it looks like the A,B,C correction is complete within a good set of trendlines. The first wave of wave (3) black looks very much like a leading diagonal with wave 5 circle now in progress. Once complete this diagonal will correct upwards before starting a much larger fall, probably early next week. Good Luck
Last weekend I suggested that the DOW DJI was getting close to a decision point, this week with the DJI powering ahead again I believe the decision point is very close. 25827 closes an open gap and is also the .786 correction from the ATH. In addition wave C blue in the correction is .618 wave A blue at this level. Momentum is still diverging and my EW belief is...
Corrections are often contained within a parallel channel and FTSE has exhibited A textbook example in compketing wave 2 black. If correct this sets the scene for a large fall in wave 3. Good luck.
The strong rise in US indices since late December has given many bears (including myself) a shock but when one looks at the chart this rise makes some sense. Often when a major support line is broken the index will bottom and then bounce back strongly to the trend line which now forms resistance. DJI has done just this and is fast approaching the area where a...
My previous wave 4 ideas were violated by the strong SPX gains since late Dec. Looking at the chart I see a possible 3 options for the EW structure so far. 1) SPX has completed INT wave 1 and 2 black and minor wave 1 blue and has nearly completed minor wave 2 blue. The recent triangle may mark the end of this current correction and if correct wave 3 minor will...
The EW structure of FTSE since the ATH has been tricky to follow BUT if my wavecount is correct FTSE still has a fall ahead to around 6425 which is the 61.8% retrace of the previous rise. At present FTSE looks to have completed an expanded flat for intermediate wave (4) black and has started Intermediate wave (5) black down. Good Luck
The minor wave 4 double zig-zag suggested in my last post was a lot stronger than expected but may have finished yesterday as a clear W,X,Y correction. There is strong momentum divergence and an initial wave down in progress, first target is the gap at 2460. Good Luck
Firstly Happy New Year to all my followers. FTSE continues to oscillate which is typical of an ending diagonal wave. If correct my EW count has FTSE in wave 4 blue of an ending diagonal which may complete at the bold RED line and the end of Intermediate wave (1) Good Luck.
Firstly Happy New Year to all my followers! SPX finished 2018 with a bounce as is usual given that most fund managers will want to maximise their annual performance. My bearish stance on stocks has not changed and I believe 2019 will continue with this theme. From an EW perspective I have the current bounce as minor wave 4 Blue which may be complete or may...
Well SPX smashed through the resistance line last week and is well in its 3rd wave down. Momentum is still down with no divergence which indicates that this 3rd wave has some way to go yet. I have marked a possible target zone for wave 3 at the 161 & 200% fib levels of wave (1) Good Luck and Merry Xmas!
Well, FTSE reached my predicted target last week in the highlighted green zone and has now reached an area of significant resistance on its way down. Looking at RSI & Momentum one can see clear divergence and I have marked the current low as intermediate wave (1) black. I expect a small bounce in wave wave (2) which may start very soon given end of 2018 is...
Update from my chart last weekend. FTSE looks to have completed minor wave 4 blue and started its decent to complete minor wave 5. Given that xmas is upon us and there is a lot of financial news next week I think that wave 5 will be slow and yo-yo like, perhaps taking the form of an ending diagonal. My target for wave 5 is somewhere in the highlighted green...
This chart needs no explaining and shows a possible SPX path.
Last weekend I suggested that NDX may try to fill the open gap? in the event NDX reversed in my highlighted zone and was rejected solidly again by the trendline which now clearly shows solid resistance. The fall last week suggests intermediate wave may be underway and initial targets are the support lines at 6635 and 6172 IF the last low at 6641 is...
Last weekend I suggested that the diagonal that had formed was more likely a leading than ending diagonal and events since then have clarified this. Minor wave 3 Blue may have finished at the red support line with minor wave 4 also complete yesterday. If correct FTSE will fall to perhaps the second support line at 6618 where intermediate wave 5 would equal wave...
Last weekend I suggested UKX was completing either an ending or leading diagonal because of the extreme choppiness and overlapping waves. Since then UKX has put in what looks like an a,b,c correction which strengthens the case that the diagonal is leading. In addition the fall from 28th Nov looks like a 5 wave impulse. If correct next week should see UKX test...
The FOMC chairman's speech last week gave the markets a bounce which has carried to the end of the week. This may be short lived as the EW structure looks very much like the bounce is wave C circle of a flat correction which when complete will lead to a much larger fall in minor wave 3. The correction may finish at the now RED resistance trendline OR try to fill...