DOW Hits An Air pocket, Wave Count Saw It Coming!

By: Enda Glynn | Fri, Jun 30, 2017
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Bon soir, tout le monde!

EURUSD hit highs not seen since exactly one year ago!

And just like the last time we saw these highs,

The result will be the same!

The more this overbought and over-bullish situation persists, the bigger the downfall we will see.

The target I set yesterday is now in sight.

1.1480 is where wave 'C' blue reaches a Fibonacci 162% of wave 'A' blue.

The 4hr chart shows another extreme in both MACD and RSI.

So upside momentum has topped out at this stage.

For the next few sessions Keep a close eye on a turn to the downside again.

A lower high with a momentum signal will offer a good short opportunity soon.

USDJPY

30 min

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4 Hours

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Daily



My Bias:
LONG

Wave Structure: rally in wave [C]
Long term wave count: wave [C] is underway, upside to above 136.00
Important risk events: JPY: N/A. USD: Personal Spending m/m, Chicago PMI.

The short term action in USDJPY over the last few days seems to have traced out an expanded flat correction in wave 'ii' brown.

After rising in the overnight session,

The price then dropped in a five wave form off the high, I have labelled that wave 'c' pink.

The price has again popped higher off the lows, so wave 'iii' brown may be underway.

An upside break of 112.47, the wave 'i' high, will signal that wave 'iii' has begun.
For tomorrow watch for that break to occur, and the formation of a higher low above 111.81.
110.94 is key support from here and must not be broken.

DOW JONES INDUSTRIALS

30 min

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4 Hours

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Daily

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My Bias: market topping process ongoing
Wave Structure: Impulsive 5 wave structure, possibly topping in an all time high.
Long term wave count: Topping in wave (5)

Important risk events: USD: Personal Spending m/m, Chicago PMI.

The DOW got absolutely slammed today!

Last nights wave count was bang on calling the rise a flat correction in wave (ii) grey.

At the time of last nights update the price stood at 21479, the high reached 21502.

And the market dropped to a low of 21195 today.

The decline looks very impulsive and it counts well as a five wave decline.

Now we need to see a three wave corrective recovery to a lower high.

It is a common occurrence for air pockets to appear near the top of a market, and todays action fits that picture.

So yet again we get another sign that this market is on shaky ground.

For tomorrow watch for that three wave recovery in a possible wave 'ii' pink.

GOLD

30 min

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4 Hours

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Daily

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My Bias: Long towards 1550
Wave Structure: ZigZag correction to the upside.
Long term wave count: Topping in wave (B) at 1550
Important risk events: USD: Personal Spending m/m, Chicago PMI.

GOLD now displays another Elliott wave buy signal off the recent low at 1235.94.

The rise is in a five wave form and the decline has traced out three waves into today’s low.
So for this evening the price has popped higher and the lows remain intact.

Initial resistance lies at 1259 and a break of that level will be another bullish signal.

But; today's high lies at 1254.75, and a break of that level will signal wave '3' pink has begun.

For the next few days it is important for GOLD to begin setting higher lows in an effort to kickoff the next bull run.

By Bullwaves for Safehaven.com


 

Enda Glynn

Author: Enda Glynn

Enda Glynn
bullwaves.com

Enda Glynn

I class myself as an Elliott wave trader now, but that's not how I started out though! It took me a long time and a whole lot of pain, to finally understand what drives the price and how to use Elliott Wave correctly!

I have been trading for years and I have tested every trading system and strategy under the sun! I used to pick entry points at random based on emotion or news events or something I heard on TV! It did not take long to destroy my capital! I have blown out my account balance before, and I had to start again,

from scratch!

Believe me, I am well acquainted with failure in trading! Im sure that the above scenario is pretty familiar to you too. We have all been there. About 10 years ago I discovered The Elliott wave Principle and its method of market analysis. Since then, I have spent years learning, testing and trading, using the wave principle as the backbone of my analysis. I even went to college to study macroeconomics and econometrics. I graduated with honours degree back in 2012. The financial market knowledge and statistical edge I gained after my degree added another level to my trading. The difference in my trading approach using the wave principle, compared to before, is like night and day.

The price started to move "my way" more and more often. The wave model, offers me a lens to view market action through, which no other form of analysis can do. Elliott wave analysis, helps me answer four key questions when I am contemplating a trade:

• What direction the price is trending.
• How far is this trend likely to go.
• Where can I enter a trade with the best risk reward ratio.
• And most importantly, at what point am I definitely wrong?!

The wave principle helps me improve my trade entry, tighten up my money management and in turn increase profitability. Seeing the waves unfold before your eyes is a very rewarding experience, It is almost like peering into the future! That is how the wave principle helps my trading, and that is why the wave principle will improve your trading. It took a long time to finally master Elliott Wave Principle. After over a decade of hard work, research and learning I can call myself an expert in the field. I regularly contribute to major trading communities at FXStreet, Forex Factory, Traders Planet. I am a chief Elliott Wave analyst at HumbleTraders.

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