Sunday, July 26, 2009

DOW/S&P 500 Elliott Wave Count & How High?

We are in the same Bear Market Wave Cycle as US Markets. So guess you know the answers!

Here goes the technical analysis by US TA Experts:

Where are we now?
(see 3 Phases of Bear Market and Dow/S&P 500 daily charts)


Phase 2 of Bear Market, Wave C up. Wave 1 is due to complete, next is Wave 2 down. Wave C will have 5 waves. Once Wave C is completed, Phase 3 of Bear Market should start.












How high can Dow/S&P 500 go?
(See Daily and Monthly Charts)

Dow: 10340 to 11500. 50% retracement = 10350. Can you see an inverted Head and Shoulder Pattern, neckline is broken, so upside target around 11500.

S&P 500: 1120 to 1200. 50% retracement = 1050. Can you see an inverted Head and Shoulder Pattern, neckline is broken, so upside target around 1200.











Wow! So bullish analysis and forecasts!

Me not so bullish. Read my comments in STI Elliott Wave Count!

Remember the Bears were 'eaten' up in the Bear Trap set by the Bulls when the Head and Shoulder Pattern have a false breakout? When there are too many Bears, the Bulls will win!

So could this be a possible Bull Trap set by the Bears? When there are too many Bulls who knows the inverted H&S Pattern, guess will likely win? Then some experts say Left and Right Shoulders are not balanced, the H&S Pattern is not complete.

More in Weekly Stock Market Forecast July 27, 2009.



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