Intraday chart for the ASX looks pretty sickly, especially compared to timezone peers. Smells like trouble ahead.
EDIT:
oops sorry forgot the chart. I read it as markdown, followed by a consolidation, with the higher probability being towards continuation than reversal:
View attachment 64149
Yes very disappointed today. Buy traders are getting chopped up sick like. Anyone still holding Index from the 24 - 25th last month lows?2% lead from U.S, Shanghai/Hang Seng closed, and we had a 120 point intraday swing down. If not now, when?
It seems the domestic figures of GDP and retail sales were the driving force today in the absence of other markets.
Right now, all the proxies for investor risk preferences that I track are signalling continuation of the current regime. What this means for the AU indices is not crystal clear, but if I had to make a forecast it would be: expect volatility.
, just leave them there even if it takes years to recover.
If you knew where the bottom would be, and what is current location in banks, would you still consider keeping them until they recover?
Just some thoughts for the market on Monday. A move lower early on to 4900-4950 and then we have the possibility of a short term bullish Gartley setup and bounce, the ratios are almost textbook. This is supported by short term cycles analysis and as such would offer a good R/R with a stop at the previous low of the capitulation we had a few weeks ago.
Cheers
Just some thoughts for the market on Monday. A move lower early on to 4900-4950 and then we have the possibility of a short term bullish Gartley setup and bounce, the ratios are almost textbook. This is supported by short term cycles analysis and as such would offer a good R/R with a stop at the previous low of the capitulation we had a few weeks ago.
Cheers
One more thing to consider during Third waves is that all strategies, analysis, cycles, oscilators, gartleys, buterflys and everything else simply stops working. You can point finger to the cycle, gartley or any oscillator that shows bottom, and it will be smashed. The only way that works here is the Wave Principle. And during those times it shows at it's best-subdivisions are the clearest in fast moving and emotional markets.
Which only proves that all other market analysis are just derivatives of the Wave Principle, not additions to it. I am looking forward to this point when people start to stop forecasting on their usuall methods that "worked" before, because they stop thrusting them after a few textbook setups which were busted by the market.
The breach of 24th lows will put the end of the long term bull market. Even by the slightest margin. And most likely it confirms that Wave C is in the works. Wave c is the same as third wave, so to anticipate bullish days would be stupid. Most likely it then produces Primary degree Point of Recognition, with Daily market decline of around -10%(optimistically), and will never recovers to this level until the bottom is reached.
Sharp rebound which was sported in the previous week most likely was the last second wave of the smaller degree.
If Gartley's scenario will work out, it would be no surprise, as a 3-3-5 flat correction will develop, with the last five wave move up to complete last second wave. But it should start rising on Monday, as later and deeper subdivisions will not allow this scenario. But why market would want to keep things still afloat for so long? Maybe one reason is that it wants to take on board as much people as possible before the Primary Degree Point of Recognition, because markets are doing what they are supposed to be doing: inflicting the most pain on the most number of people.
One more thing to consider during Third waves is that all strategies, analysis, cycles, oscilators, gartleys, buterflys and everything else simply stops working. You can point finger to the cycle, gartley or any oscillator that shows bottom, and it will be smashed. The only way that works here is the Wave Principle. And during those times it shows at it's best-subdivisions are the clearest in fast moving and emotional markets.
Which only proves that all other market analysis are just derivatives of the Wave Principle, not additions to it. I am looking forward to this point when people start to stop forecasting on their usuall methods that "worked" before, because they stop thrusting them after a few textbook setups which were busted by the market.
Ohhhh no..... Here we go again........
Oohhh no. Woe betide those heathen pagans that dare to commit acts of blasphemy against the one and only prophet of the only truly prescient and infallible God of technical analysis - Elliot be his hallowed name!
Can you describe the key indicators you use?
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