Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Could Gold Price Reach $7,000 by 2030? - 6th Aug 20
Bananas for All! Keep Dancing… FOMC - 6th Aug 20
How to Do Bets During This Time - 6th Aug 20
How to develop your stock trading strategy - 6th Aug 20
Stock Investors What to do if Trump Bans TikTok - 5th Aug 20
Gold Trifecta of Key Signals for Gold Mining Stocks - 5th Aug 20
ARE YOU LOVING YOUR SERVITUDE? - 5th Aug 20
Stock Market Uptrend Continues? - 4th Aug 20
The Dimensions of Covid-19: The Hong Kong Flu Redux - 4th Aug 20
High Yield Junk Bonds Are Hot Again -- Despite Warning Signs - 4th Aug 20
Gold Stocks Autumn Rally - 4th Aug 20
“Government Sachs” Is Worried About the Federal Reserve Note - 4th Aug 20
Gold Miners Still Pushing That Cart of Rocks Up Hill - 4th Aug 20
UK Government to Cancel Christmas - Crazy Covid Eid 2020! - 4th Aug 20
Covid-19 Exposes NHS Institutional Racism Against Black and Asian Staff and Patients - 4th Aug 20
How Sony Is Fueling the Computer Vision Boom - 3rd Aug 20
Computer Gaming System Rig Top Tips For 6 Years Future Proofing Build Spec - 3rd Aug 20
Cornwwall Bude Caravan Park Holidays 2020 - Look Inside Holiday Resort Caravan - 3rd Aug 20
UK Caravan Park Holidays 2020 Review - Hoseasons Cayton Bay North East England - 3rd Aug 20
Best Travel Bags for 2020 Summer Holidays , Back Sling packs, water proof, money belt and tactical - 3rd Aug 20
Precious Metals Warn Of Increased Volatility Ahead - 2nd Aug 20
The Key USDX Sign for Gold and Silver - 2nd Aug 20
Corona Crisis Will Have Lasting Impact on Gold Market - 2nd Aug 20
Gold & Silver: Two Pictures - 1st Aug 20
The Bullish Case for Stocks Isn't Over Yet - 1st Aug 20
Is Gold Price Action Warning Of Imminent Monetary Collapse - Part 2? - 1st Aug 20
Will America Accept the World's Worst Pandemic Response Government - 1st Aug 20
Stock Market Technical Patterns, Future Expectations and More – Part II - 1st Aug 20
Trump White House Accelerating Toward a US Dollar Crisis - 31st Jul 20
Why US Commercial Real Estate is Set to Get Slammed - 31st Jul 20
Gold Price Blows Through Upside Resistance - The Chase Is On - 31st Jul 20
Is Crude Oil Price Setting Up for a Waterfall Decline? - 31st Jul 20
Stock Market Technical Patterns, Future Expectations and More - 30th Jul 20
Why Big Money Is Already Pouring Into Edge Computing Tech Stocks - 30th Jul 20
Economic and Geopolitical Worries Fuel Gold’s Rally - 30th Jul 20
How to Finance an Investment Property - 30th Jul 20
I Hate Banks - Including Goldman Sachs - 29th Jul 20
NASDAQ Stock Market Double Top & Price Channels Suggest Pending Price Correction - 29th Jul 20
Silver Price Surge Leaves Naysayers in the Dust - 29th Jul 20
UK Supermarket Covid-19 Shop - Few Masks, Lack of Social Distancing (Tesco) - 29th Jul 20
Budgie Clipped Wings, How Long Before it Can Fly Again? - 29th Jul 20
How To Take Advantage Of Tesla's 400% Stock Surge - 29th Jul 20
Gold Makes Record High and Targets $6,000 in New Bull Cycle - 28th Jul 20
Gold Strong Signal For A Secular Bull Market - 28th Jul 20
Anatomy of a Gold and Silver Precious Metals Bull Market - 28th Jul 20
Shopify Is Seizing an $80 Billion Pot of Gold - 28th Jul 20
Stock Market Minor Correction Underway - 28th Jul 20
Why College Is Never Coming Back - 27th Jul 20
Stocks Disconnect from Economy, Gold Responds - 27th Jul 20
Silver Begins Big Upside Rally Attempt - 27th Jul 20
The Gold and Silver Markets Have Changed… What About You? - 27th Jul 20
Google, Apple And Amazon Are Leading A $30 Trillion Assault On Wall Street - 27th Jul 20
This Stock Market Indicator Reaches "Lowest Level in Nearly 20 Years" - 26th Jul 20
New Wave of Economic Stimulus Lifts Gold Price - 26th Jul 20
Stock Market Slow Grind Higher Above the Early June Stock Highs - 26th Jul 20
How High Will Silver Go? - 25th Jul 20
If You Own Gold, Look Out Below - 25th Jul 20
Crude Oil and Energy Sets Up Near Major Resistance – Breakdown Pending - 25th Jul 20
FREE Access to Premium Market Forecasts by Elliott Wave International - 25th Jul 20
The Promise of Silver as August Approaches: Accumulation and Conversation - 25th Jul 20
The Silver Bull Gateway is at Hand - 24th Jul 20
The Prospects of S&P 500 Above the Early June Highs - 24th Jul 20
How Silver Could Surpass Its All-Time High - 24th Jul 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Stock and Financial Markets Stay Range Bound

Stock-Markets / Financial Markets 2011 Dec 14, 2011 - 02:44 PM GMT

By: WavePatternTraders

Stock-Markets

Best Financial Markets Analysis ArticleThe markets have spent the best part of 6 months doing nothing but causing pain to both bulls and bears, you only have to look at the triangle formation on the daily chart to note the wild swings we have been seeing over the past few months, those are not helping either side, this market has now become a traders play ground, it's not for the investor or swing trader imo.


As I write this article the markets have gone a grand total of 5 points from the highs made in April 2010 nearly 20 months on, yet the trader that was active has I would suspect made more than 5 points.

The markets appear to be in a transition period where they are trying to find a balance between which side will finally take the market in its true direction.

But currently it's stuck in a sideways trend, although from our perspective it's a traders dream, as long as the bureaucrats stay out the markets, and let the markets fight it out, it most defiantly become a traders playground, active traders only need apply.

Although at some stage this will resolve itself in either direction.

The move off the lows made on 25th Nov, appear to be a very impulsive leg, and we currently still imo are in some sort of correction to that move.

In my last article I wrote that I was expecting a pullback to reset the oscillators and to kill off some the bullish euphoria from Bernanke's "stick save". Already with the markets down nearly a 50% retrace, it appears some bears are back into their bear suits.

Now nothing is ever perfect in the land of trading, but price action imo don't quite lend itself to an aggressive heavy decline, what we appear to be doing is some sort of correction, and although it may not be over, it's still far from what I would consider a setup for far lower price just, yet.

Although there is some evidence growing that lower prices might be in order if the market fails to clear some higher resistance clusters, but atm, I tend to think the market is still trying to carve a low, whilst we were looking for this pullback into 1230ES, it appears the market has a few tricks up its sleeve and "shake n baking" traders.

You can see by the trend channel it's currently locked in, that this appears to be a corrective decline; it would need a serious move under the 1210SPX to really start to get a bearish looking tape, and see a heavy break of the lower trend line.

ES

Another potential is that the market is trying to carve out an Ending Diagonal and it still has a bit of work to do, although we won't really know just yet unless we see a rejection, as I write this article the US markets have yet to open, so things may of changed in the coming hours, but we have some upside areas that we are focusing on, should the market fail to get above some key resistance clusters, then we are continuing to look lower, but we are focus around the 1208ES (MARCH) area for a potential low to be setting up.

I tend to think that the market really needs to try and find a base above the 1208ES.

Simple Elliott Wave Analysis

I get an occasional email asking why Elliott Wave is so hard to understand and why can't there be an easier way to look at Elliott Wave Theory.

I am currently in the process or trying to put something together that is going to simplify Elliott Wave for students of all levels.

I believe that it don't need to be as complicated as some make out it should be, I also believe that in order for others to accept the ideas and theory, knowledge should be staged and learnt slowly, not throw someone in on the deep end and ask them to swim straight away.

We used this chart yesterday Tuesday 13th Dec just as the markets open, we already rallied in globex and it appeared to be 3 waves, so the market was set to decide.

t want to rally past the 1x1 measured target? Or was that all it had to offer.

What you see there is a simple 3 wave move, traders see this all the time, yet they don't really understand what a simple setup this is, with what looked like a 3 wave move into a measured target, we had to be on out guard in case of a "bull trap", some of use bought the lows the day before, so seeing globex rally overnight was a result, but we also wanted to find out if the market was setting up a trap for the bulls.

We were also watching a key area of 47ES (DEC), both the ES and NQ only rallied 3 waves to virtually measured moves where wave [c] = [a] so approx 2 equal legs.

Just using a simple setup like that got us out of longs that we bought the day before and got us short again, as the failure to get above the 200DMA and a strong resistance area at 2300 was enough to suggest it was a "bull trap". And a new low was being suggested, this was way before the FOMC.

Before

After

Elliott Wave trading don't need to be complicated, I think people spend far too much time trying to look for the perfect Elliott Wave count, but not enough on price action, I tend to distant myself from the orthodox wave counters, as I also rely or fractals such as the one above, I simply never needed to know what the Elliott Wave count was, all I knew and told members was, we have a 3 wave move into resistance, failure to see upside and a rejection from this area suggests a new low.

Well the new has come, we traded that in real time, and we never even needed to look at a chart, we saw a simple 3 wave bounce into a measured [c]=[a] area and failure to get above its 200DMA and 2300 helped a lot. That's simply trading, it's what we try to do day in and day out.

This article is going to be short, but its right up to date, so I hope readers benefit from it, I will expand more on the next article over the weekend, as last weekend I had experienced some issues, and unable to find the time to write my usual weekend report.

Until next time.

Have a profitable week ahead.

Click here to become a member

You can also follow us on twitter

What do we offer?

Short and long term analysis on US and European markets, various major FX pairs, commodities from Gold and silver to markets like natural gas.

Daily analysis on where I think the market is going with key support and resistance areas, we move and adjust as the market adjusts.

A chat room where members can discuss ideas with me or other members.

Members get to know who is moving the markets in the S&P pits*

*I have permission to post comments from the audio I hear from the S&P pits.

If you looking for quality analysis from someone that actually looks at multiple charts and works hard at providing members information to stay on the right side of the trends and making $$$, why not give the site a trial.

If any of the readers want to see this article in a PDF format.

Please send an e-mail to Enquires@wavepatterntraders.com

Please put in the header PDF, or make it known that you want to be added to the mailing list for any future articles.

Or if you have any questions about becoming a member, please use the email address above.

If you like what you see, or want to see more of my work, then please sign up for the 4 week trial.

This article is just a small portion of the markets I follow.

I cover many markets, from FX to US equities, right the way through to commodities.

If I have the data I am more than willing to offer requests to members.

Currently new members can sign up for a 4 week free trial to test drive the site, and see if my work can help in your trading and if it meets your requirements.

If you don't like what you see, then drop me an email within the 1st 4 weeks from when you join, and ask for a no questions refund.

You simply have nothing to lose.

By Jason Soni AKA Nouf

© 2011 Copyright Jason Soni AKA Nouf - All Rights Reserved

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.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

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

6 Critical Money Making Rules