Best of the Week
Most Popular
1.BrExit House Prices Crash, Flat or Rally? UK Housing Market Affordability Crisis - Nadeem_Walayat
2.Stocks Bull Market Climbs Wall of Worry, Bubble? When Will it End? - Nadeem_Walayat
3.Gold Price Is Now On Its Way To All-Time Highs - Hubert_Moolman
4.Deutche Bank Stock Price Crash - The EU Has Problems Far Beyond the Brexit - Harry_Dent
5.UK interest Rate PANIC CUT! As Banks Prepare to Steal Customer Deposits - Nadeem_Walayat
6.Gold and Silver Bull Phase 1 : Final Impulse Dead Ahead - Plunger
7.Central Bankers Fighting An Unprecedented Global Economic Slowdown - Gordon_T_Long
8.Putin Hacking Hillary for Trump, Russia's Manchurian Candidate? - Nadeem_Walayat
9.Stock Market Insiders Are Secretly Selling, Cycle Top Next Month - Chris_Vermeulen
10.Gold Sector - Is it time to Back up the Truck? – Mortgage the Farm? - Peter_Degraaf
Free Silver
Last 7 days
Suspicious Reversal in Gold Price - 23rd Aug 16
If Trump Can’t Pull Off a Victory, Expect a Civil War - 23rd Aug 16
Ceding ICANN and Internet Control to Globalists - 23rd Aug 16
How to Spot an Oversold Stock Market - 23rd Aug 16
Gerald Celente Sees Worst Market Crash, New Military Conflict, Gold Spike to $2,000/oz - 23rd Aug 16
EU Olympics Medals Table Propaganda Includes BrExit Britain - 22nd Aug 16
BrExit Win's Britain Olympics Success Freedom Dividend, Economy Next - 22nd Aug 16
Stock Market Top Forming, but Slowly - 22nd Aug 16
(Really) Alternative Banking Systems - 22nd Aug 16
Vauxhall Zafira Fires - Second Recall Issued - Inspection Before Bursting into Flames? - 21st Aug 16
Will the Stock Market Bubble Pop Regardless if the FED Never Raises Rates? - 21st Aug 16
US Government Spending - 3 Big Stories Not Being Covered – Part III - 21st Aug 16
Silver Analysis - 20th Aug 16
SPX New Highs, Correction Next? - 20th Aug 16
Housing Bubble - The Marginal Buyer Holds The Pin That Pops Every Asset Bubble - 20th Aug 16
Gold Miners Q2 2016 Fundamentals - 19th Aug 16
Which Price Ratio Matters Most in a Fiat Ponzi? - 19th Aug 16
Big Policies, Bigger Failures - 19th Aug 16
Higher Crude Oil’s Prices and USD/CAD - 19th Aug 16
Here’s Why You Should Look for Dividend Stocks and How - 19th Aug 16
Deglobalization Already Underway — 4 Technologies That Will Speed It Up - 19th Aug 16
These 6 Charts Show Why the Average American Is Fed Up - 18th Aug 16
SPX Easing Lower - 18th Aug 16
Low / Negative Interst Rate’s Legacy - 18th Aug 16
The 45th Anniversary of The Most Destructive Event In Modern Monetary History - 18th Aug 16
USDU - An Important Perspective on the US Dollar - 17th Aug 16
SPX Completes Wave 1 Decline - 17th Aug 16
How to Quickly Spot Common Fibonacci Ratios on a Chart - 17th Aug 16
When Does a Forecast Become a Trade? - 17th Aug 16
Kondratiev Wave - The Financial Winter Is Nearing! - 17th Aug 16
Learn "The 4 Best Elliott Waves to Trade -- and How to Trade Them" - 16th Aug 16
Stock Market Bears Turning Bullish At New All Time Highs - Time to Get Worried? - 15th Aug 16
Job Seekers Sacrificed to the Inflation Gods - 15th Aug 16
A Look At Commodities and Financial Markets Trading Week Ahead - 15th Aug 16
Stock Market New Top Forming? - 15th Aug 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

How to Trade Elliott Waves

Using Goldman and JP Morgan to Predict Stock Market Turning Points

Stock-Markets / Stock Markets 2012 Dec 21, 2012 - 05:07 AM GMT

By: WavePatternTraders

Stock-Markets

Goldman (GS)

A couple of stocks I like to follow are GS and JPM to forecast pivot turning points in the US stock markets, particularly the SPX.

You can see how JPM and GS appear to be tracking the SPX well and that it’s my belief that if we can track potential Elliott Wave counts in both Goldman and JPM, we can find an edge to the US markets and use that information to forecast major peaks and turns in the US stock markets.


If you overlay SPX, GS and JPM with each other, there is a clear bonding between the 3 markets.

I want to first show an example to the benefits of counting stocks like GS, because they are big stocks that are traded by big institutions, it’s important to watch stocks like this as they act very familiar to the major markets. If those stocks have patterns that suggest a reversal then in my opinion we can use that information to time major turning points in the major indexes.

Back in March this year I was tracking a 5 wave advance for Goldman and it looked completed, which got me on high alert for a potential reversal in the US markets, I have seen it too many times that stocks like Goldman and JP Morgan show completed patterns and then the major markets reverse.

With a 5 wave advance, Elliott Wave suggests once a 5 wave move is completed then a correction is due.

If we overlay GS with the SPX, you can clearly see how knowing what was going on in Goldman gave us a distinct advantage with what was about to happen, or I should say what I thought was going to happen with the US stock markets.

Using Goldman I was actually able to predict that a turning point in the SPX was days away.

The high for Goldman was on 27th March 2012, the high for the SPX was on 2nd April. As Goldman and other stocks like JPM started to reverse and move lower it was only a matter of time before the rest of the market would follow. Clearly you can see how the markets reacted.

Which brings me to the point of the article and by using Goldman and JP Morgan, I think a major turning point is at hand in the US markets and one that could be upsetting the bulls that are too complacent.

If we look at Goldman’s Elliott Wave count, from the June lows there appears to be a 5 wave advance, and currently I suspect its now in the 5th wave, so a top in Goldman should be seen shortly which as  history suggests the SPX will not be far behind if Goldman rolls over.

My best guess at this stage is sometime in January, that Goldman will complete its advance in a 5 wave impulse move. With Goldman so close to the March 2012 highs I suspect this will push towards $135 and end its advance.

It appears to need a few more gyrations to complete its advance from the June 2012 lows. So sometime in January this could be vital clue to use predict a reversal in the US stock markets, and the way GS and JPM appear to be setting up, early in 2013 suggests a turning point for the US markets.

JP Morgan (JPM)

I have been tracking a similar wave count in JP Morgan and that from the June 2012 lows, this as well looks like a 5 wave advance in play and a small dip then a push higher suggests a completion to the advance and another clue that I will be watching to suggest a major turn in the SPX.

With or without a new high in the SPX above the September 2012 highs, (although I have daily Elliott Wave pattern that ideally sees 1480-1500SPX) once the patterns on JPM and GS complete themselves. I am confident they will be signally a strong reversal in US stocks, just like Goldman did back in March 2012.

They say they never ring the bell at the top, but who needs a bell when we have JPM and GS.

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

© 2012 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.

WavePatternTraders Archive

© 2005-2016 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

Catching a Falling Financial Knife