Best of the Week
Most Popular
1.Bitcoin War Begins – Bitcoin Cash Rises 50% While Bitcoin Drops $1,000 In 24 Hours - Jeff_Berwick
2.Fragile Stock Market Bull in a China Shop -James_Quinn
3.Sheffield Leafy Suburbs Tree Felling's Triggering House Prices CRASH! - Nadeem_Walayat
4.Bank of England Hikes UK Interest Rates 100%, Reversing BREXIT PANIC Cut! - Nadeem_Walayat
5.Government Finances and Gold - Cautionary Tale told in Four Charts - Michael_J_Kosares
6.Gold Stocks Winter Rally - Zeal_LLC
7.The Stock Market- From Here to Infinity? - Plunger
8.Ethereum (ETH/USD) – bullish breakout of large symmetrical triangle looks to be getting closer - MarketsToday
9.Electronic Gold: The Deep State’s Corrupt Threat to Human Prosperity and Freedom - Stewart_Dougherty
10.Finally, The Fall Of The House Of Saud - Jim_Willie_CB
Last 7 days
Never Mind Tea Leaves, Here’s a Strong Signal from the Economic Dashboard - 17th Dec 17
As Bitcoin Breaks All-Time Highs Near $18,000 Its Future Has Never Been So Uncertain - 17th Dec 17
Best Time / Month to Buy a Used Car From a UK Dealer - 16th Dec 17
Relief Rally in Gold Mining Stocks - 16th Dec 17
Amid Bad Fundamentals, Gold Sector Rally May Have Begun - 16th Dec 17
Gold Bullish on US Fed Interest Rate Hike - 16th Dec 17
The LORAX Explains What Happened to Sheffield's Street Trees 2017 - 16th Dec 17
Bitcoin Trading Alert: Bitcoin Pauses – Will Appreciation Follow? - 16th Dec 17
SanDisk Ultra 128gb 100mbs Micro SD Card for Smartphone's Speed Test - 15th Dec 17
Inflation is Spiking Globally… Bond Bubble Bursts in 3… 2… - 15th Dec 17
Sheffield's 'Real' LORAX Defending the Trees From the Labour City Council Patrol Units - 15th Dec 17
Stock Market Decline Signals are Near - 15th Dec 17
Santa Is Putting Christmas On The Blockchain And Saving Billions - 14th Dec 17
The Unprotected, the Protected, the Vulnerably Protected Classes—Which Are You? - 14th Dec 17
Gold’s Upside Target - 14th Dec 17
Year-end US Interest Rate Hike Again Proves To Be Launchpad For Gold Price - 14th Dec 17
2 Charts That Might Define the Fed’s Jerome Powell Era - 13th Dec 17
UK Stagflation Risk As Inflation Hits 3.1% and House Prices Fall - 13th Dec 17
Stock Market Elliott Wave Forecasts - Is the World coming to the end? - 13th Dec 17
A Method Traders Can Use to Confirm an Elliott Wave Count - 13th Dec 17
Best Time / Month of Year to BUY a USED Car is DECEMBER, UK Analysis - 13th Dec 17
A Former Wall Street Veteran: Good Traders Are Born, Not Trained - 12th Dec 17
Buy Gold, Silver Time After Speculators Reduce Longs and Banks Reduce Shorts to Continue? - 12th Dec 17
Masters of Economic and Political Illusion – in Taxes, Debt, Government, and Markets - 12th Dec 17
Approved Used Land Rover Main Dealer Real Customer Buying Guide - Hunters, Chester - 12th Dec 17
Gold Price 100% Bullish Signal - 12th Dec 17
Epic Stock Market & Fixed Income Bubble Will Not End Well - 12th Dec 17
Bitcoin can be stolen. Although Can’t be hacked - 11th Dec 17
Have Stocks Reached A Permanently Rigged Plateau? - 11th Dec 17
Trying To Beat The System Is A Fatally Flawed Investment Strategy - 11th Dec 17
Is This The Beginning Of The Next Silver Rush? - 11th Dec 17
The Dow Gold Ratio - 11th Dec 17

Market Oracle FREE Newsletter

Traders Workshop

Stock Market Ready To Pull The Rug Out From Under You!

Stock-Markets / Stock Market 2017 Nov 17, 2017 - 01:09 PM GMT

By: Enda_Glynn

Stock-Markets

This week we got the news that the fed has finally reached its 2% inflation goal!
This is after 9 years of interest rates pinned on the floor,
And,
About 4.5 trillion in cheap credit flooded into government and wall st.
That is all it takes!

Now the central bank can rest easy as the target has been met and all is well with the world.
Right?


Let me summarize where we stand in this current bubble.

1- 40% of the stocks traded on the NTSE are below their 200 day MA.
2- market uniformity has been broken, new 52 week lows outnumbered new 52 week highs,
3- credit spreads are worsening as junk bond yields have soared over the last week.
4- a possible series of 1,2 waves off the recent high at 23600.
5- extremes in bullishness displayed by market actors across the board, from governments to corporations to individuals,
45.1% bullish, 23.1% bearish in the latest AAII investor survey.
6- Bearish momentum signals registered today on the 4hr chart, and the price is approaching the 200MA.

These facts alone do mean that the final high in stocks is in,
BUT,
Every major market top in history,
is characterized by conditions exactly like I just described.

As I have maintained for the last few months,
Now is not the time to be foolishly bullish,
Be vigilant, start saving.
Because,
This market is ready to rip the rug out from under us.

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

The DOW gaped higher right out of the gate this morning.
investors are not willing to submit to reality just yet!

I have labelled the rally of the recent wave (i) low as a possible expanded flat correction wave (ii).
The price is now sitting at the 61.8% retracement level of the previous decline.

On the 4hr chart,
You can see that the price has rebounded off the 200MA,
A further decline below the MA will add significant weight to the fully bearish wave count.

On the daily char the momentum indicators have diverged in a very bearish fashion from the price pattern.
After reaching bullish extremes not seen for years!
The scene is set in the longer term chart.

For tomorrow;
lets see how the price reacts to the Fibonacci retracement level.
The price may be building a larger degree top
which could longer to trace out if we see a series of 1,2 waves occur.

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 corrected higher today in a possible wave '2' pink.
I have switched the expected wave structure in wave 'c' brown to a flat correction.
This should follow a 3,3,5 wave form,
And as such wave 'c' is now expected to trace out five waves down to the target at 1250.

Wave '1' and '2' are complete,
Wave '3' should carry the price below support.

Every indicator I know of is pointing to a major bottom forming in the GOLD market, This Low could be a significant as 'Browns bottom' in the late 90's, and the coming rally could be just as big.

Once this corrective pattern is complete, I will be looking for the formation of a bullish Elliott wave signal off the low.
For tomorrow;

A break of todays low at 1275.74 will signal that wave '3' down has begun.

If you want to be ready for the next opportunity in Crude, Gold, The DOW and the USD FX markets,

Check out the membership offers and stay on top of the price action!

BULLWAVES MEMBERSHIP

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.

© 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 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