Best of the Week
Most Popular
1.Is the Stocks Bull Market Over? Dow Trend Forecast into End January 2015 - Nadeem_Walayat
2.Gold and Silver Stocks Apocalypse Now, Bear Market Review - Rambus_Chartology
3.NHS Baldrick Plan to Spread Ebola Across UK - Sheffield, Newcastle, Liverpool, London Hospitals - Nadeem_Walayat
4.Ebola Terror Threat Suicide Bio-Weapons Threatens Multiple 9/11's, Global Plague - Nadeem_Walayat
5.Second-Richest Man Says Mortgages Now a "No Brainer" - Dr. Steve Sjuggerud
6.Gold And Silver Still No End In Sight - Michael_Noonan
7.NHS Baldrick Plan to Spread Ebola Across UK - Sheffield, Newcastle, Liverpool, London Hospitals - Nadeem_Walayat
8.The Gold Bug is Set to Bite Back - EWI
9.How Alibaba Could Capitalize on the EBay-PayPal Split - Frank_Holmes
10.The Consequences of the Economic Peace - John_Mauldin
Last 5 days
Gold And Silver Price - Respect The Trend But Prepare For A Reversal - 25th Oct 14
Ebola Has Nothing To Do With The Stock Market - 25th Oct 14
The Gallery of Crowd Behavior: Goodbye Stock Market All Time Highs - 25th Oct 14
Japanese Style Deflation Coming? Where? Fed Falling Behind the Curve? Which Way? - 25th Oct 14
Gold Price Rebounds but Gold Miners Struggle - 25th Oct 14
Stock Market Buy the Dip or Sell the Rally - 25th Oct 14
Get Ready for “Stupid Cheap” Stock Prices - 25th Oct 14
The Trend Every Nation on Earth Is Pouring Money Into - 25th Oct 14 - Keith Fitz-Gerald
Bitcoin Price Decline Stopped, Possibly Temporarily - 25th Oct 14
Bullish Silver Stealth Buying - 24th Oct 14
Blood in the Streets to Create the Gold Stocks Investor Opportunity of the Decade - 24th Oct 14
Swiss ‘Yes’ and ‘No’ Gold Initiative Campaigns Compete at Launches in Bern - 24th Oct 14
War And The Law Of Unintended Consequences - 24th Oct 14
Tesco Meltdown Debt Default Risk Could Trigger a Financial Crisis in Early 2015 - 24th Oct 14
Saudi Move to Cut Oil Prices Is Now Russia's Biggest Economic Threat - 24th Oct 14
US Stock Market Top Is Now In Sight - 24th Oct 14
New Profit Points in the Shifting Balance of Power, Welcome to Saudi America - 24th Oct 14
QE Failure & Folly Of Paper Mache, Treasury Bond Integrated Lifeline Patches - 24th Oct 14
U.S. Economy Faltering Momentum, Debt and Asset Bubbles - 23rd Oct 14
Annuities - Afraid Your Money Will Vanish before You Do? - 23rd Oct 14
What Debt Deleveraging? - 23rd Oct 14
How to Profit from Massive Spin-Offs with Just One Play - 23rd Oct 14
Evaluating Ebola as a Biological Weapon - 23rd Oct 14
Euro, USD, Gold and Stocks According to Chartology - 23rd Oct 14
Why You Should Always Be Invested in the Stock Market (Even Now) - 23rd Oct 14
Five U.S. Housing Market Warning Signs Point to Real Estate Market Downturn - 23rd Oct 14
The Better Short: Gold or Silver? - 23rd Oct 14
Focus on Graphite Companies with Green Energy and Technology Strategies - 22nd Oct 14
Crude Oil Price Hitting Bottom - 22nd Oct 14
Evidence of Another Even More Sweeping U.S. Housing Market Bust Already Starting to Appear - 22nd Oct 14
Gold Or Crushing Paper Debt Stocks Crash? - 22nd Oct 14
India Gold Demand Surges 450% and Bank of Russia Demand At 15 Year High - 22nd Oct 14
Bitcoin Stock Exchange Could Be "More Valuable than Alibaba" - 22nd Oct 14
Currency War - How to Profit from a Stronger U.S. Dollar - 22nd Oct 14
Banks Hold Treasuries and Make Loans- 22nd Oct 14
Gold and Silver Timing is Everything - 22nd Oct 14
Don't Get Ruined by These 10 Popular Investment Myths (Part VII) - 22nd Oct 14
Follow the Baby Boom to Biotech Stock Profits - 22nd Oct 14
Copper, Nickel and Zinc Won't Be Cheap for Long - 22nd Oct 14
How Will We Know That the Gold & Silver Price Bottom Is In? - 21st Oct 14
Is Gold as Dead as Florida Hurricanes? - 21st Oct 14
First Swiss Gold Poll Shows Pro-Gold Side In Lead At 45% - 21st Oct 14
The Similarities Between Germany and China - 21st Oct 14
The REAL Reason Why the Stock Market Turned Down - 21st Oct 14
Petrobras is a 'Scheme, Not a Stock' - 21st Oct 14
Stocks Bear Market Indicator Is Off the Mark - 20th Oct 14
Stock Market Ideal Turning Point is at Hand - 20th Oct 14
Investors Quit Complaining, The Environment is Perfect Right Now - 20th Oct 14
Ebola Armageddon Could Trigger a Rebirth in Gold and Silver Prices - 20th Oct 14
Gold vs Euro Risk Due To Possible Return of Italian Lira - Drachmas, Escudos, Pesetas and Punts? - 20th Oct 14
Stocks Rebounded Following Recent Sell-Off, But Will It Last? - 20th Oct 14
U.S. Responsible for West Africa Ebola Outbreak Says Liberian Scientist - 20th Oct 14
Stock Market Intermediate B Wave has Started - 20th Oct 14
Gold Stocks Analysis – FNV, CG, NCM, SBM - 19th Oct 14
Stock Market Primary IV Wave Counter Trend Rally - 19th Oct 14
Gold And Silver - Financial World: House Of Cards Built On Sand - 18th Oct 14
Anatomy of a Stock Market Sell-Off - 18th Oct 14
Why OPEC Has Declared an Oil War on Russia - 18th Oct 14
Gold and Silver Extreme Shorting Peaks - 18th Oct 14
Bitcoin Price Fall to $350? - 18th Oct 14
Tesco Supermarket Crisis Worse To Come as Customers Vanish! - 18th Oct 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Stocks Epic Bear Market

Stock Market Fireworks Early 2013

Stock-Markets / Stock Markets 2013 Dec 24, 2012 - 04:56 AM GMT

By: WavePatternTraders

Stock-Markets

3 Down 2 More to Go! - I have been following a number of markets since late September, and I have been looking for new highs and price to exceed those highs made on September 2012. Early this week 2 of those markets took out and surpassed the prior September highs, the NYSE and XLF making those new highs confirmed my original thoughts that the decline from the September high was a clear 3 wave decline, which I have maintained only to the cries of the bears telling me it is the start of some gigantic market crash.


Well the DAX made a new yearly high as did other European markets earlier in the month, now we have the XLF and the NYSE making new highs above the September 2012 high. So the bears that were counting those markets as topped in September have got that completely wrong, which does not surprise me at all considering they are not respecting what price is suggesting.

Why did they get it wrong? Well its simple, it was a 3 wave decline, NOT a 5 wave decline as some Elliotticians tried to count it.

Why is this important?

Well a 3 wave decline in an uptrend is a corrective pullback and should see new highs as we have seen this week on the NYSE and XLF, I have been a working a theme with many markets and patterns and it seems we are only pieces away from a full set. The DOW and the SPX have yet to exceed their respective September highs, so whilst the market is not showing signs of a strong reversal, I am going to continue to give the benefit to the bulls, to run the market higher and take out the buy stops that will be sitting at those highs. Not only would it complete some ideas I am working with, but it will also likely turn the majority of traders and the media bullish at precisely the wrong time.

Just the way I like it. Trader’s getting mega bullish at the highs, like they were at the highs in 2010, 2011 & 2012

NYSE

This market can stretch a bit higher, which would help my ideas of seeing the DOW and SPX see that new price high above the September 2012 high, which would complete their ideas. It’s only just touching the target zone, so a bit more inside would setup up nicely as there is also a strong area of resistance just above that should pose as significant resistance, around 8665-8800.

Non Elliotticians can see the basic bearish wedge shape and the lack of strength to make a new high with a new price highs suggests that the market is in a topping phase, and if my main wave count is correct as shown we are setting up for a large move lower soon, although I still ideally want to see the DOW and SPX exceed their respective September 2012 high first.

Target is a test of the March 2009 lows round 4000.

XLF

From the March 2009 lows you can clearly see a similar pattern to the NYSE and a 3 wave move, furthermore the last few months we appear to be making an ending diagonal for wave [C] of a larger B wave. (large bearish looking wedge)

With the new high made this week, that ticked this market as technically completed, although if the other main markets run a bit higher and I get to see the SPX around 1480SPX I suspect this could run a little bit higher towards the strong resistance area around the blue line at $17.17.

With the large RSI divergence showing, I still favor this as being inside an ending diagonal, so once the markets are ready and setup, I favor a strong reversal potentially sometime early in 2013.

It will need something serious on the upside to negate the patterns, and a serious new wave of buyers to enter the market. What I have seen so far is a trend that looks like its losing momentum and appears to be trying to make an important top.

Which all fits in with my ideas of a significant top setting up, based on the 3 wave moves from the March 2009 lows.

If you recall in my last article I wrote that we can watch the key financial stocks of the XLF such as JPM, BAC and GS for a timing of the XLF as well as the SPX, those stocks are important as the technician that is one step of those stocks will be closer to predicting a turn just as I did at the April 2012 highs.

It is my belief that the markets appear to be setting up for a large reversal early in 2013, and potentially a major top. Although a few markets are lacking that bit higher in price, but there are strong clues as well as pieces of the larger jigsaw puzzle appearing to come together.

SPX

I am still expecting this market to put in a move towards 1480SPX, although there is always the chance of a truncation as it would not be the first time I have tried to pinch every single last piece of a wave pattern, only to see it fall short right at the end, but with the market still not showing a strong impulsive move to the downside I am going to give the benefit to the upside and continue looking for that test of 1480-1500SPX.

We have some key areas below, should they get violated I may just have to be forced to switch bias and accept the market failed to put in the new high, as many other markets have technically completed their respective patterns we are just waiting on the DOW and the SPX to join the party.

Conclusion

With the way the markets are setting up, it looks like early 2013 is going to be an explosive start, with many US and Asian markets setting up and hitting our long standing targets; I think we are ready for some fireworks.

Are you interested in joining our party? Interested in what we have to offer? Take the 4 week free trial, this week alone we nailed setups on Gold ,NDX, SPX and AUDUSD that would have made your yearly membership 3 times over.

But don’t take my word for it; come check us out if you think we are not the real deal. With a 4 week free trial, what are you waiting for?

I will leave it there for now and want wish all my members as well as readers of my articles a merry Christmas and happy New Year and see you in for 2013 for some fireworks.

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

© 2005-2014 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

Free Report - Financial Markets 2014