Hi Traders,
The Dow Jones (now at 25375) seems to defy the good fundamentals of the US economy. In fact, it is now staging a correction heading to the area 25000-24700
ELLIOTT WAVES
As you can see in the weekly chart, the DJ30 is unfolding a typical wave four, which is made of an a-b-c pattern. Wave a (down) and wave b (up) are completed and wave c (down) just started its way down.This is even clearer in the daily chart.
Finally, the 4-hours chart reveals the completion of wave b and the start of the new downtrend with the first two waves: wave 1 and wave 2. NOTE: the strong reversal candlestick pattern made of the last three candles.
Weekly chart, click to enlarge
Daily chart, click to enlarge
4-hours chart, click to enlarge
Hi Traders,
Both the British FT 100 index (now at 7620) and the Australian SPI 200 index futures (now at 6230) might be aiming for a correction.
ELLIOTT WAVES
The fundamentals for this turnaround seem to be exclusively political for both countries but, on the technical side, the two indices might head to a similar destiny despite a different wave count.
FT 100 index
The daily and 4-hours charts show the completion of wave four. A drop to the 7280 area might follow soon to make room for wave five.
The weekly and monthly charts display the completion of five waves up, signalling a top and the end of a major wave count. A correction should follow.
Finally, the weekly chart reveals 4-5 doji candles. This is called "breakaway pattern". It's a continuation pattern aiming to continue the downtrend initiated after the top at 7884.6
SPI 200 index futures
The SPI 200 (now at 6230) could still end its course around 6330 - see the top blue line in the monthly chart. In meantime, a correction might be under way.
The daily and 4-hours charts show the completion of five waves as well as a dangerous double top. A drop to the 6098 or 6076 area might occur.
The monthly and the weekly chart shows that the huge a-b-c might not be completed yet and this correction might be only temporary.
FT 100 CHARTS
FT 100 - Monthly chart, click to enlarge
FT 100 - Weekly chart, click to enlarge
FT 100 - Daily chart, click to enlarge
FT 100 - 4-hours chart, click to enlarge
SPI 200 CHARTS
SPI 200 - Monthly chart, click to enlarge
SPI 200 - Weekly chart, click to enlarge
SPI 200 - Daily chart, click to enlarge
SPI 200 - 4-hours chart, click to enlarge
Hi traders,
The WTI OIL (now at 66.63) is approaching the theoretical Turning Point at 67.20-67.42 where it should resume the downtrend to the area at 62.74-62.35.
ELLIOTT WAVES
The monthly chart shows that we might have witnessed the last retracement wave up (at 5 4 ) before the final dive which will deploy wave-5 downwards (not labelled yet).
The weekly chart shows the giant a-b-c started in Feb 2016 where wave-c is still in the making. Wave-a and wave-b are fully deployed whilst wave-c still needs another small leg down (wave-5, still to be labelled) to complete the giant a-b-c.
As for the daily chart and the 4-hours chart, see wave-4 approaching the theoretical Turning Point at 67.20-67.42.
Monthly chart. Click to enlarge
Weekly chart. Click to enlarge
Daily chart. Click to enlarge
4-hours chart. Click to enlarge
Hi Traders,
The USDSGD (now at 1.3361) seems to be ready for a big dive as it shows clear signs of extreme weakness. It might be heading to the 1.3147 area sooner than later.
See the blue target lines in the monthly chart and in the weekly chart.
ELLIOTT WAVES
The monthly chart shows the completion of major wave 4 around January 3, 2017. That Pivot Point marked the start of major wave 5 downwards (not labelled yet).
The weekly chart and the daily chart show the completion of another wave 4 of a lesser degree around May 10.
That Pivot Point marked the start of another wave 5 of a lesser degree downwards (not labelled yet).
Finally, the 4-hours chart shows a significant double top. Note the last 4 bars: it's a candlestick pattern called runaway pattern. This could be a nearly perfect time to short the USDSGD.
Monthly chart, click to enlarge
Weekly chart, click to enlarge
Daily chart, click to enlarge
4-hours chart, click to enlarge
Hi Traders,
The AUDUSD (now at 0.7615) is mocking up the Titanic as it seems to be ready to sink. Although there is still a chance for a small rally to the area 0.7638-42, it shows clear signs of extreme weakness and it might be heading to the 0.73 area sooner than later.
See the blue target lines in the weekly chart.
ELLIOTT WAVES
The monthly chart and the weekly chart show the completion of major wave 4 (in magenta) around Jan 26. That Pivot Point marked the start of major wave 5 downwards (not labelled yet).
The daily chart displays another wave 4 that topped around June 6. That Pivot Point marked the start of another wave 5 of a smaller degree, heading South as well (still, not labelled yet). Note the major support at 0.7500.
The 4-hours chart shows the composition of wave 4 and the short term target of the first leg of wave 5 (not labelled yet) aiming to 0.7560
Monthly chart, click to enlarge
Weekly chart, click to enlarge
Daily chart, click to enlarge
4-hours chart, click to enlarge
