Significant Decline In Stocks On The Cards!

Stock-Markets / Stock Markets 2018 Mar 02, 2018 - 07:47 AM GMT

There is a whole lot going on across thet markets after todays trade!
And a lot of opportunity developing in the charts.
So lets not waste time chatting,
And get right into it!

UPCOMING RISK EVENTS:

USD: Revised UoM Consumer Sentiment.
EUR: German Retail Sales m/m.
GBP: BOE Gov Carney Speaks, Construction PMI, Prime Minister May Speaks.
JPY: n/a.

My Bias: long term bearish
Wave Structure: Topping in wave [B] black.
Long term wave count: lower in wave [C] black.

EURUSD reached into the support band below 1.2205 today.
The price seems to have found a bid in that range as we can see a pop higher off the lows.

Wave 'a' of (ii) brown may now be underway
and should trace out three waves.

The 50% retracement level lies at 1.2356,
So this is the initial target for wave (ii)
1.2155 must now hold.

Tomorrow;
It is now time to look for a complete bearish Elliot wave signal off the high in wave (ii) brown.
Once wave (ii) is complete,
The price structure should off a low risk opportunity on the short side.

My Bias: short below parity in wave (5).
Wave Structure: completing wave (4) blue correction higher.
Long term wave count: decline in wave (5) blue, below parity

Cable broke support at 1.3763 which is the low of the previous wave 'a' pink.
This is the minimum expectation for wave 'c'
of the larger double combination wave (iv) brown.
The price has already filled the smaller trend channel
And completed a three wave structure in wave 'c' pink.

Further support lies at 1.3625,
So I expect a bottom to form within this band.

Tomorrow;
Watch for signs of a turn higher in wave (v) brown.
A break above 1.3856 will signal that wave (v) has begun.

My Bias: LONG
Wave Structure: rally in wave [C]
Long term wave count: wave [C] is underway, upside to above 136.00

USDJPY has taken a sharp turn down in the last hour,
This decline suggests a three wave decline is underway in wave 'c' of 'ii'.
A break of 106.37 is the minimum target for wave 'ii' brown.
And that has just been reached.

From a technical viewpoint on the 4hr chart,
USDJPY is looking pretty bullish with a large bullish divergence in momentum
And a 50MA which is turning higher.
A bullish MA cross in the 4hr chart will trigger a momentum trade,
So that is worth watching.

Tomorrow;
I am looking for wave 'ii' to complete at a nearby low and wave 'iii' to begin.
Tomorrow could bring a significant low in USDJPY for the long-term.

My Bias: market topping process completing
Wave Structure: Impulsive 5 wave structure, topping in an all time high.
Long term wave count: topped in wave (5)

The DOW broke down through support at the previous wave 'b' this evening.
This action triggers the alternate wave count,
Which views the recent high as the top in wave [ii] green.

The possibility of another significant decline in stocks is now on the cards!

I have labeled an ongoing 5 wave pattern to the downside in wave (i) of [iii].
Wave (ii) should challenge 25000 again in a three wave rally.

This pattern will also complete a lower degree head and shoulders around wave [ii] green
Another sign that stocks are lurching towards another bear market phase.

Tomorrow;
Lets take it one step at a time,
Watch for wave (i) grey to complete below support,
A corrective rally should occur in wave (ii) grey,
That will complete a bearish Elliott wave signal off wave [ii].
And a high probability for a larger decline in wave (iii) of [iii].
Exciting time ahead in stocks!

My Bias: Long to a new all time high above 1827.
Wave Structure: Impulse structure to a new high.
Long term wave count: wave (3) above 1666.

GOLD has reached the target at 1307,
The price is also sitting at trend channel support at two degrees of trend.
And so far,
This level seems to have found a bid.

Wave [ii] is now bottoming
and we should see a spike in price over the next few sessions to kick off wave [iii] green.
Gold is now looking very attractive on the long side again.

Tomorrow;
Watch for the formation of an impulse wave structure higher in wave 'i' brown,
A break of the previous wave 'b' will indicate that the price has begun a rally in wave [iii] green.

My Bias: topping in a large correction wave [4].
Wave Structure: Double combination higher in wave [4] red.
Long term wave count: wave [4] target $63 - $70

Crude is in much the same position as the DOW right now.
We have a larger degree Elliott wave signal complete off the high,
And now a smaller degree signal has almost formed in wave (ii) grey.

Wave (ii) grey should carry the price back into about 62.00 to complete.
This is the 50% retracement level of the decline in wave (i) grey.
Wave (ii) will also complete a bearish head and shoulders pattern.

The 4hr chart shows that the price has declined through both the 50 and 200MA lines.
The odds are lining up in favor of a large decline in wave [iii] to begin soon.

Tomorrow;
I have shown that wave 'a' has possible completed at todays high,
with wave 'b' underway.
Wave 'c' is projected to 62.00
and that should complete the bearish signal in crude.
Next week is looking interesting on the short side for Crude.

Click here to Reply, Reply to all, or Forward
72.48 GB (62%) of 116 GB used
Manage
Terms - Privacy
Last account activity: 31 minutes ago
Details

WANT TO KNOW the next big move in the Dollar, GOLD and the DOW???

Check out our membership plan over at Bullwaves.org,

You can see into the Elliott wave future every night!

Enda Glynn
http://bullwaves.org
I am an Elliott wave trader,
I have studied and traded using Elliott wave analysis as the backbone of my approach to markets for the last 10 years.
I take a top down approach to market analysis
starting at the daily time frame all the way down to the 30 minute time frame.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.