Hi Traders,
After this low, it's supposed to bounce back up to 4685-5697 but only to follow with a new downtrend to 5459-5475 or even 5334-5320.
The 4-hour chart shows that we have started wave 3 down but we have only completed 3 waves out of 5. Hence, expect the SPI 200 to bounce back to form wave 4 up.
First some apologies for not writing for a month but I now work for Vantage FX in Sydney and there's little time for other activities.
BTW, you are very welcome to call me at +61 2 8999 2046 - 4pm to 11pm - or through Skype (mariodconti).
The SPI 200
After hitting level 6009 (as predicted last year) the SPI 200 started reversing down and it's now close to the first low in the area 5540-5521.
After this low, it's supposed to bounce back up to 4685-5697 but only to follow with a new downtrend to 5459-5475 or even 5334-5320.
NOTE: If this wave count is correct, this major reversal could get much lower then 5000 over the medium run.
TARGETS
- down to 5540-5521
- up to 4685-5697
- down to 5459-5475 or 5334-5320
ELLIOTT WAVES
The monthly chart shows that the 3 waves we were expecting (in blue, font 12) are fully shaped. This three waves are part of the major wave 2 (in red, font 14) that topped at 6009.
Theoretically this is it, and, unless the last minute surprise, we don't expect any wave 4 and 5 up. Basically, it's a major reversal.
Theoretically this is it, and, unless the last minute surprise, we don't expect any wave 4 and 5 up. Basically, it's a major reversal.
monthly chart - click to enlarge
weekly chart - click to enlarge
daily chart - click to enlarge
4-hou chart - click to enlarge
