Best Financial Markets Analysis Article This is a rather short note to stress again that there should now be a crashing impulse at work which is proceeding on the dot according to the global EW expectations depicted in “Global stock market crash: what happens next?” on November 8.

As it read in this article, “we're now just days away from a severe global crashing impulse……”. Indeed you get with chart #1 a simplified update of chart #8 from that previous article. The outlook of the last 4 days from the key point brown P2 does seem quite clear (please refer to “Global stocks: what happens next?” for detailed explanations about brown P2 ): after a corrective brown wave ii shaping as brown abc , the US $ registered on November 11 the first day of violet wave iii within a new 5 wave move extending at least as violet i/ii/iii/iv/v , while ADR is following a mirror EW path towards new lows bound to materialize in a near future. Please note that the study featured here with chart #1 is not prejudging any further extension that may arise in the future course of violet wave iii .

Chart #1

So far, it should be noted as well that the volatility thru violet waves i/ii is at the HIGHEST for the US $ since the beginning of red wave c . For example, the size of violet wave i is bigger than the size of blue wave ii thru brown wave i ; this rising volatility should be regarded as an indication that deleveraging (leading to the rise of the US $) is still speeding up, which is to be connected to the statement previously discussed (see “Global stock market crash: what happens next?”) that “the worst of the crash is possibly lying ahead”.

As we did already specify in this previous article, the ONLY question really left is whether global stocks would reach new lows before the G20 meeting or not. The most teasing irony would be at hand if these new lows were taking place thru the week following the closure of the G20 meeting. As a last remark, I'm sure that you have noticed that the violet i/ii/iii/iv/v impulse with global stocks and the US $ (stocks down, $ up) is engulfing raw materials as well in its course. Alas, as it has been explained in previous articles since mid August 2008, the buying wave to the benefit of the US $ caused by massive worldwide deleveraging is not over yet.

By Eric F.M. Chevrette
France
eric_chevrette@yahoo.fr
Fone: 00.237.9.660.53.59

© 2008 Eric F.M. Chevrette
Eric Chevrette translated Bob Prechter's “Elliott Wave Principle” in 1989 after graduating in 1984 from the ESCP (Ecole Supérieure de Commerce de Paris, see http://www.escp-eap.net ) which has been ranked 6 best business school in Europe by the Financial Times in 2006. He since has become interested in “market forecasting” and “global economical analysis” since 1987 and is currently helping people to protect and grow their assets while anticipating the big trends.

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