Elliott Wave Analysis
wave 1 blue travelled about 800 points, so we can expect at least 800 points in wave 3 blue.
More likely we will get 162% * 800= 1300 points or so in wave 3 blue.
So this one is worth waiting for.
I think the minimum we can expect from here is a rally into 1500, as show on the 4hr chart.
The 30 minute chart foresees an even greater rally, one that would top the all time high of 2011.
One step at a time though!
Last night I was looking for USDJPY to decline further in wave (c) green,
After a brief rise to touch the upper trendline of that trend channel, the price dropped 240 points in a couple of hours.
Since the wave [iv] high on Thursday evening the market dropped like a stone, as expected and wave [v] netted 400 points in 4 days.
There is a target zone between the 50% and 62% retracement lines, that is 1158 -1150.
But I am favouring the lesser correction given the bullish setup.
Cable dropped another 140 points at todays lows, and is now down about 300 points off Fridays high where I called wave [iv] as complete.
If the current wave counts are correct, it spells disaster ahead for the stock market, and a return to a bull market for Gold.
One thing is for sure, things are going to get interesting from here!
The continued bullish action has all but confirmed the larger wave count,
This rally couuld go far further if my alternate wave count turns out to be correct.
possibly well abouve the all time high.
Tomorrow is non farm payrolls day and the unemployment number comes out, (if you want put any weight in that number! ), but this data does tend to weigh heavy on the market.
The price action today in cable seems to fit a developing flat correction in wave [iv] green.