Premium Elliott Wave Analysis
Every day I try to approach the markets with a fresh pair of eyes as it were.
So, one day I take a view on the price action,
and then come back the next day to judge and criticize my own assumptions and biases.
The DOW reaches new all time high!
SO we should all celebrate that stocks are more expensive than ever before.
I hate expensive things!
GOLD fell today in a three wave form, which points to a corrective decline.
The bullish picture is intact so far and wave ‘3’ is likely to push prices higher.
The alternate wave count is shown circled in red,
That wave count allows for another rise to complete wave ‘v’ pink.
And the invalidation point for the alternate count is at 1.1368.
Either way, the price must decline soon.
The alternate wave count shown circled in red shows the possibility of a larger wave ‘ii’ brown.
The action within the rising trend channel is so far in three waves,
Which could still be a ‘b’ wave.
So the price must turn up soon to validate the current bullish labeling.
The DOW is now moving in a corrective pattern, possibly in wave ‘ii’ pink.
I have labelled the short term chart as a complete wave ‘a’ and ‘b’ in blue.
That leaves wave ‘c’ blue to the downside to finish off wave ‘ii’ pink.
Keep in mind the alternate wave count shown circled in red.
This interpretation views wave ‘ii’ brown as a running flat correction.
So far the rise is in three waves, which suggests a minor counter trend rally within wave ‘c’ pink.
Wave ‘ii’ may be a running flat correction, which is indicated by the alternate wave count circled in red.
wave ‘c’ should trace out 5 internal movements to complete.
Once wave ‘ii’ brown is complete, wave ‘iii’ up should begin,
This is the next significant buying opportunity.
The pattern looks likely to continue for another few days, with wave ‘c’ pink yet to come.
The 50% retracement lies at 1239.59 and this is the first likely target for wave ‘ii’ to complete.