DJI - DAILY - Heiken Ashi - SHORT. Following along from the thesis of a previous post, a Doji Star paints a thousand words. I expect a sharp reversal to the downside over the next few trading sessions.
** NOT FINANCIAL ADVICE **
SPX - DJT -CORRELATION CONFIRMATION - DEMAND IS NOT THERE!
The SPX and DJT are highly correlated, this is to say that the correlation indicates the underlying demand for goods requiring transportation. In a previous chart using the same tickers I showed you that there was no confirmation of an economic 'slowdown', this time we do!
NOTE where I have made...
Following along with the MEGAPHONE theme from a previous chart taking the first touch of the MEGAPHONE TOP, as the top. Being a weekly chart, we need to see the weekly close below the RIBBON for CONFIRMATION that we are indeed heading into a period of CORRECTION. Given that the FEDERAL RESERVE will meet next week and have already stated that they will not move in...
The DJI bounced off the support of the rising wedge. Although things indices seem to have recovered - if wedge support is broken expect more to the downside. There are still a few days left in the week, so anything is possible.
When we put DJT against SPX it is plain to see the non-confirmation. So, what does that mean? In simple terms, this is an indicator that there is a fundamental weakness within the economy. Both the DJI and SPX are at all time highs, yet it is quite obvious that since the May high on the DJT the demand for goods is just not there (there are only so many 80 inch TVs...
ELLIOT WAVE 5 IMPULSE: A snapshot of the weekly to date, June 25th, 2021. I am under the conviction that we are looking at the beginning of the stair-step-down. I'm keeping an eye on the daily also, observing it for a tell. As it stands there are two scenarios I see playing out - as follows:
A more rapid decline with a crash September 2021
A slow decline then...
A snapshot of the weekly to date, June 23rd, 2021. I am under the conviction that we are looking at the beginning of the stair-step-down. I'm keeping an eye on the daily also, observing it for a tell. As it stands there are two scenarios I see playing out - as follows:
A slow decline then a grand finale December 2022
A more rapid decline with a crash...
Classic "Descending Triangle", whether or not I'm contradicted by the Bulls is yet to be seen. Nonetheless the triangle is here in plain sight and expect a downward trend to the 61.8 ($44k) as I have noted in my weekly chart dated 19th April. Take care out there and don't try and catch falling knives, they hurt!
PLEASE NOTE: This is not financial advice.
Looks like a possible further pullback. If the asset breaks below the 61.8 expect the action to be reflected across the board as deflation begins to tighten it's grip.
DISCLAIMER: The information and charts provided by me are not financial advice.
Here's a 90 Day Chart that tells me that we're going to be in consolidation until April 2022.
A symmetrical triangle chart pattern represents a period of consolidation before the price is forced to breakout or breakdown. A breakdown from the lower trendline marks the start of a new bearish trend, while a breakout from the upper trendline indicates the start of a...