Have the equity markets finally peaked? In our view, they should have never carried on as they have - but with psychopaths at the helm of the financial sphere, you just never know what the future will bring.
It's been a long, long time since financial markets have actually reflected what's taking place in mainstream economies, and as such, it's been a similarly long time since we've even bothered to try and correlate the two.
Beyond this misfortunate decoupling of reality and the broken equations of logic it fosters, all that remains as a reliable gauge for measuring the progress of financial markets is price and trend. Fortunately, at the end of the day, price and trend trump everything less.
The following is a small sample of what you will find in Elliott Wave Technology's FREE Mid-Term Outlook. You can register to get the balance of this edition and future issues of the Mid-Term Outlook from the Elliott Wave Technology homepage.
DOW: Weekly Turn Bar Study
Vertical dashed lines on this sample chart of the Dow mark potential timing points for turn-week pivot highs or lows. The margin of allowance for such turn pivots is +/- one or two bars.
The next plausible turn week for the Dow occurs the week ending February 13. We shall identify additional potential turn-periods in forthcoming issues.
Furthermore, so long as 18,103.45 holds top, sustained trade and closes below the rising red trendline so noted - will target a near-term downside price target of 16,361 - which from Friday's close, is a rather mild 6.5% correction and a still quite modest 9.62% correction from the all time print high for starters.
Once again, you can register to get the balance of this edition and future issues of the Mid-Term Outlook from the Elliott Wave Technology homepage.
Until Next Time,
Trade Better / Invest Smarter