Best of the Week
Most Popular
1. Crude Oil and Water: How Climate Change is Threatening our Two Most Precious Commodities - Richard_Mills
2.The Potential $54 Trillion Cost Of The Fed's Planned Interest Rate Increases - Dan_Amerman
3.Best Cash ISA Savings for Rising UK Interest Rates and High Inflation - March 2018 - Nadeem_Walayat
4.Fed Interest Hikes, US Dollar, and Gold - Zeal_LLC
5.What Happens Next after February’s Stock Market Selloff - Troy_Bombardia
6.The 'Beast from the East' UK Extreme Snow Weather - Sheffield Day 2 - N_Walayat
7.Currencies Will Be ‘Flushed Down the Toilet’ Triggering a ‘Mad Rush into Gold’ - MoneyMetals
8.Significant Decline In Stocks On The Cards! -Enda_Glynn
9.Land Rover Discovery Sport Extreme Driving "Beast from the East" Snow Weather Test - N_Walayat
10.SILVER Large Specualtors Net Short Position 15 Year Anniversary - Clive_Maund
Last 7 days
A Strong Economy and Weak Stock Market is Bullish for Stocks - 22nd Mar 18
Fed Raises US Interest Rates 25bp – Where Are We In The Stock Market Cycle? - 22nd Mar 18
Why Spotify Will Likely Surge During Its IPO - 22nd Mar 18
Facebook: The Anti-Social Network Covert Data Gathering - 21st Mar 18
Additional Signs for Gold and Silver Amid Increasing FOMC Tension - 21st Mar 18
Credit Concerns In U.S. Growing As LIBOR OIS Surges to 2009 High - 21st Mar 18
Stock Markets Are Flat-to-lower Before the FOMC - 21st Mar 18
Will Powell’s Actions Pop Stock Market Perfection - 21st Mar 18
Economic Moral Hazards of the International Criminal Court - and Philippines Withdrawal - 21st Mar 18
Larry Kudlow vs. Vladimir Putin on Gold - 21st Mar 18
Trump Builds Economy and War Machine - 21st Mar 18
This Stock Market "Illusion" Can Destroy Once-Vibrant Portfolios - 21st Mar 18
Gold Short-term Pull Back in Progress - 20th Mar 18
Stocks Appear to be Under Pressure - 20th Mar 18
Time To Eliminate Your Wall Street Tax? - 20th Mar 18
The Beast from the East Snow, UK Roads Driving Car Accidents - 20th Mar 18
Can Bitcoin Price Rally Continue After Paypal Fake FUD Attack? - 19th Mar 18
2018 Reversal Dates for Gold, Silver and Gold Stocks - 19th Mar 18
This Tech Breakthrough Could Save The Electric Car Market - 19th Mar 18
Stocks Set to Open Lower, Should You Buy? - 19th Mar 18
The Wealth Machine That Rising Interest Rates Create Conflict With The National Debt - 19th Mar 18
Affiliate Marketing Tips and Network Recommendations - 19th Mar 18
Do Stocks Bull Market Tops Need Breadth Divergences? - 19th Mar 18
Doritos Instant £500 Win! Why Super Market Shelves are Empty - 19th Mar 18
Bonds, Inflation & the Market Amigos - 19th Mar 18
US Housing Real Estate Market and Banking Pressures Are Building - 19th Mar 18
Stock Market Bulls Last Stand? - 18th Mar 18
Putin Flip-Flops Like A Drunken Whore On Bitcoin Cryptocurrency Legalization - 18th Mar 18
How to Legally Manipulate Interest Rates - 18th Mar 18
Return of Stock Market Volatility Amidst Political Chaos and Uncertain Economy - 18th Mar 18
Bitcoin Price Trend Forecast, Paypal FUD Fake Cryptocurrency Warning - 17th Mar 18
Strong Earnings Growth is Bullish for Stocks - 17th Mar 18
The War on the Post Office - 17th Mar 18
GDX Gold Mining Stocks Fundamentals - 16th Mar 18
Nationalism, Not the Russians, got Trump Elected - 16th Mar 18
Has Bitcoin Bought It? - 16th Mar 18
Crude Oil Price – Who Wants the Triangle? - 16th Mar 18
PayPal Cease Trading Crypto Currency Bitcoin Warning Email Sophisticated Fake Scam? - 16th Mar 18
EUR/USD – Something Old, Something New and… Something Blue - 16th Mar 18

Market Oracle FREE Newsletter

Urgent Stock Market Message

Euro, Stocks, Gold Momentum Extremes All Round!

Stock-Markets / Financial Markets 2017 May 18, 2017 - 12:27 PM GMT

By: Enda_Glynn


My Bias: short in wave 3 blue.
Wave Structure: downward impulse wave 1, 2 blue
Long term wave count: lower in wave 3 blue
Important risk events: EUR: ECB President Draghi Speaks. USD: Unemployment Claims, Philly Fed Manufacturing Index.

Good evening to you all, hope you had a great day.

Well, If you ever wanted to witness what an overbought extreme looks like,
Todays EURUSD action is a prime example.

I have been surprised by the severity of the rally over the last few days, but it has done very little to change my mind on the wave count.
What you are witnessing here, may well be the final high in EURUSD for many years to come.
We have had extension after extension in this wave [c], but every indicator is boiling right now!

The 4hr RSI reached a 1 year high today, at 90.41,
The price also tagged the upper trendline of the rising trend channel in wave (c) brown.
The price looks like it is going to drop like a stone very soon.
Of course it is almost impossible to resist the urge to buy when the herd is charging like this.
When I step back, and take in all the information on display,
I reach the exact same conclusion,
EURUSD is now a bubble looking for a pin.
I am actively on the lookout for an impulsive decline and the formation of a lower high as the sign the market has turned.

The high at 1.1299 is the invalidation line for the current immediately bearish view.

My Bias: market topping process ongoing
Wave Structure: Impulsive 5 wave structure, possibly topping in an all time high.
Long term wave count: Topping in wave (5)
Important risk events: USD: Unemployment Claims, Philly Fed Manufacturing Index.

Another rip-roaring day in the stock market! I was expecting a decline today,
But not to that degree!

I have relabelled the action with my next best interpretation,
That is;
the rally off wave [iv] green has now traced out a five waves up in wave [i] grey,
and three waves down in wave [ii] grey.
This opens up the possibility for a serious advance in wave (iii) grey to come our way soon.
20636 was the 61.8% retracement of wave [i] grey, so we are right about the area for a typical second wave retracement.
I will be watching for tomorrows reaction to the unemployment claims figures,
If I am correct here.
A higher low off wave [ii] will create a nice opportunity to ride wave [iii] to new highs

My Bias: Long towards 1550
Wave Structure: ZigZag correction to the upside.
Long term wave count: Topping in wave (B) at 1550
Important risk events: USD: Unemployment Claims, Philly Fed Manufacturing Index.

What a difference a day makes.
I have been cautiously bullish over the last week or so,
And then in one foul swoop, the market rockets into a clear impulsive form.
just like magic!

It is still hard to decipher the internal wave form of the recent overlapping upside drift.
After todays rally, it looks like the market has been lurching higher in a series of wave 1,2 rallies off the lows.
This leads me to believe that the price will likely continue to unfurl higher above resistance at 1271.
In order to create a completed five wave structure to the upside.
Todays rally could well have turned the tide in this market.
The long awaited rally in wave (iii) blue has just arrived.

Enda Glynn
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.

© 2017 Copyright Enda Glynn - 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.

© 2005-2018 - 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