Elliott Wave Training

Are you looking to learn the Elliott Wave principle? Or maybe you already have some experience and want to find the ways to improve your skills better.

Click on this post for details:

http://wavepatterntraders.blogspot.com/2012/04/elliott-wave-training.html



Thursday, November 29, 2012

Elliott Wave Analysis of EURO STOXX 50

From the Sept 2012 lows i suspect this is working a complex WXY correction, i am looking for a move into the 2600-2700 area although from the last swing lower some sort of 3 wave bounce is all that is required

Ideally it sees towards 2700 but that might be based on seeing the DAX near 7600 and the SPX near 1480

But once this idea is finished i suspect this advance is completely reversed and target under 1900



Elliott Wave Analysis of the DAX



From the March 2009 lows we can clearly see that the market resembles a 3 wave advance, this is a key component to Elliotticians as it suggests the advance is a corrective move against the decline from 2007-2009.

If you look closer you can clearly see what looks like a wedge shape. I am currently working an idea on the SPX to see a new yearly high around 1480-1500SPX either into the year end or the start of next year.

Hence which I think the DAX is likely to drag other markets higher, you can also see the 3 wave decline from the September 2012 highs, this is a strong sign that the US markets likely made a corrective decline and this idea fits in with my long term ideas for the US markets as well, to run up and test the Sept 2012 highs around 1480 on the SPX.

Currently I think the DAX is working an ending diagonal and now in wave [5], so a target towards 7550-7600 is favored, which should see the SPX see that new high I want to see for its pattern.



The advance has been a strong move, but we still need to see some sort of 3 wave move, I suspect it start to get choppy as it enters 7400-7500 area, but overall I am looking for a new yearly high to complete the ending diagonal idea.

To non technicians you can see the bearish wedge shape, although on this scale it can still take a few more weeks to finish as it’s lacking a new price high.







So the bulls really need to stay focused on this idea as the market approaches my target band I strongly suggest caution for anyone still long this market, as if my interpretation is correct and we make a new price high, the expectation is for a strong reversal, one that could ultimately suggest this market is going back to test the Mar 2009 lows and target 3500.

Until next time 

Have a profitable week ahead