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Nikkei (NKD #F) Forecasting the rally & buying the dips

Hello fellow traders. In this technical blog we’re going to take a quick look at the past Elliott Wave chart of Nikkei (NKD #F) published in members area of www.elliottwave-forecast.com. In further text we’re going to explain our view and the Elliott Wave count.
Nikkei (NKD #F) Elliott Wave 4 Hour Chart 04.05.2017
As our members know, we were pointing out that Nikkei is supported due to its bulish sequences in weekly time frame and correlation. We recommended members to wait for the price to reach the extremes at lower levels, before buying it. Structure has been pretty sideways, but calling for more short term weakness in 7th swing toward 18589- 18332 area ( potential buying zone). Index needed another leg lower in wave C red of (Y) blue ,before wave ((4)) pull back becomes ready to complete as Double Three Pattern. As Nikkei was bullish in higher time frames, we recommended our members to avoid selling , and keep buying the dips. Our buying zone was at 18589- 18332 area, when invalidation level was below 17917.

Nikkei (NKD #F) Elliott Wave 4 Hour Chart 05.11.2017
Eventually Nikkei has reached proposed buying zone, found buyers and turned higher as expected. Wave ((4 )) pull back is counted completed at 18240 low, and now index is bearish against that level. Current Elliott Wave forecasts suggests that 19855-20018 area can produce 3 wave pull back. As far as the price holds below current short term high wave X red pull back is in progress. We don’t advise selling the index, and suggests members to remain long within risk free positions.

Nikkei (NKD #F) Elliott Wave 4 Hour Chart 06.26.2017
We got proposed X red pull back from 19855-20018 area that has completed at 19296 . The index has made rally , reaching new highs as forecasted.
Note : some labels have been removed from the chart in order to protect clients privileges. Keep in mind market is very dynamic. If you’re interested new forecasts of Nikkei you can find them in the membership areaof EWF.


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NIFTY Elliott Wave View: More Upside

Short term NIFTY Elliott Wave view suggests the pullback to 9449.06 low on 6/30 ended Intermediate wave (2). Up from there, rally is unfolding as an Elliott wave double three structure where Minute wave ((w)) ended at 9700.7 and Minute wave ((x)) ended at 9642.65. Wave ((y)) is in progress also as a double three structure where Minutte wave (w) ended at 9830.05.

Minutte wave (x) pullback ideally stays above 9642.65, but more importantly above 9449.06 for the next leg higher. While pivot at 9449.06 is intact, expect NIFTY to extend higher to 9894.8 - 9954.5 to complete Minor wave W and end cycle from 6/30 low. Afterwards, Index should pullback in Minor wave X in 3, 7, or 11 swing to correct cycle from 6/30 low before the rally resumes. We don't like selling the Index.

NIFTY 1 hour Elliott Wave Chart

Attached Image (click to enlarge)

Attached Image (click to enlarge)

NIFTY Elliott Wave View: Resuming Higher

Short term NIFTY Elliott Wave view suggests the rally to 9709.3 ended Intermediate wave (1), and the pullback to 9449.06 low ended Intermediate wave (2). Intermediate wave (3) is unfolding as an Elliott wave double three structure where Minor wave W of (3) is currently in progress towards 9894.8 – 9954.5.

Up from 6/30 low at 9449.06, Minor wave W of (3) is unfolding as an Elliott Wave double three structure where Minute wave ((w)) ended at 9700.7 and Minute wave ((x)) ended at 9642.65. Wave ((y)) is in progress also as a double three structure where Minutte wave (w) ended at 9830.05, and Minutte wave (x) pullback is proposed complete at 9778.85.

Near term focus is on 9894.8 – 9954.5 to complete Minor wave W and end cycle from 6/30 low. Afterwards, Index should pullback in Minor wave X in 3, 7, or 11 swing to correct cycle from 6/30 low before the rally resumes. We don’t like selling the Index and expect buyers to appear once wave X is complete provided pivot at 9449.06 stays intact.

NIFTY 1 Hour Elliott Wave Chart

Attached Image (click to enlarge)

Attached Image (click to enlarge)

Bitcoin Deja Vu corrective sequence

Since June peak at $3000, Bitcoin lost 35% of its value driving the rest of the cryptocurrency market into chaos as 1st August is approaching which is scheduled to trigger activation of Segregated Witness (SegWit) and could lead to a split in Bitcoins blockchain. There is no need to explain whats going to happen in the coming weeks as the internet is already full of articles containing the details about it.
Whats really important is the price structure and how we can interpret it to get an idea about the possible coming path. We believe that the world market is ruled by technical analysis as fundamentals is only used to trigger the move. So as we have an important coming event for Bitcoin, then usually the market will send us a message through the charts which we can read it with different methods.
Lets start by taking a look at previous BTCUSD chart and understand what the price has done in the past :
Bitcoin December 2013

Bitcoin January 2015

Bitcoin July 2016

Bitcoin seems to be doing a simple 3 waves correction then bouncing higher again, so if you actually bought last year dip or even better the 2015 dip then you should be still enjoying the show from a lower price despite the recent drop. Every instrument around the world is doing the same thing over and over again : after a strong move in a bullish / bearish trend, the price starts a boring correction full of misleading movement to consume time until the next leg starts.
Bitcoin is no different from the others and its been following the same path in bigger & lower time frames. So why it didnt rally to new highs after the first 3 waves pullback in June ?
We mentioned in our previous article how bitcoin can rally to new highs after ending a 3 swings pullback but if the pivot at June lows fails then it will end up extending the correction in 7 swings to the downside. The tricky part is to identify what type of correction is taking place because no one can predict how big the correction will be and how much time will it take.
Bitcoin WXY 8H Chart 07/16/2017
WXY is one of the most common patterns in the new adaption of Elliott Wave Theory. This structure is commonly called double three Elliott Wave pattern. Market shows this structure very frequently nowadays in many instruments in almost all time frames. It is a very reliable structure by which we can make a good analysis. What is more important is that it can give us good trading inputs with clearly defined levels of invalidation and destination areas.
Consequently, BTCUSD has already reached the 100% 161.8% Fibonacci extension area ($1900 $1400) where we expect buyers to show up looking for a new move to the upside or at least a 3 waves bounce. But as long as the price fails to make new highs then it could be part of a larger corrective structure and its only ending the first leg of it.
Bitcoin ABC 8H Chart 07/16/2017

The structure can be counted in a different way if Bitcoin is doing an ABC Flat structure, which is another common type of correction that can be sometimes hard to trade because it tends to extends beyond the 1.618 fib ext level. There is many other scenarios that can play out but im only presenting the two most aggressive ones to explain the current deja vu situation for BTCUSD.
Recap
Market condition has changed over the time, instruments can be trending higher or lower in series of 3 wave sequences rather than impulsive sequence and this can be frequently seen in the forex market. Bitcoin is no exception as its just another financial instrument leading the correction of the cryptocurrency market and still has the potential to rally to new all time highs. It wont matter if it will do it from current levels or a lower area, what really matter is how you are willing to manage your position during such movement to protect your investment.
No one is perfect and we dont claim to have 100% accuracy, but a system with high accuracy acts as a great trading tool because forecasting is a process of continuous adjustments. A waver (trader) needs to accept when an idea doesnt work out and adjust to new data.

If you enjoyed this article, feel free to check our Technical Blog to read more posts. You can also take this opportunity and try our services 14 days for FREE to learn how to to trade forex, indices, commodities and stocks using our blue boxes and the 3, 7 or 11 swings sequence . You will get access to our current 52 instruments updated in 4 different time frames, Live Trading Room and 2 Live Analysis Session done by our Expert Analysts every day, 24-hour chat room support and much more.

DXY Elliott Wave View: More Downside

Short term DXY (USD Index) Elliott Wave view suggests the decline from 6/20 peak (97.87) is unfolding as a Zigzag Elliott Wave structure. Down from 97.87 high, decline to 95.47 ended Minor wave A, and bounce to 96.51 high ended Minor wave B. Wave C is unfolding as an Elliott wave Impulse structure with extension where Minute wave ((i)) ended at 95.75 and Minute wave ((ii)) ended at 96.2. Minute wave ((iii)) is subdivided into another impulsive wave of a smaller degree. Minutte wave (i) ended at 95.51, Minutte wave (ii) ended at 95.98 and Minutte wave (iii) is currently in progress. Expect Minutte wave (iii) to end at 94.3 - 94.7 area, then the Index should bounce in Minutte wave (iv) before turning lower again. We don’t like buying the Index and expect bounces to find offer in 3, 7, or 11 swing for more downside.

DXY 1 Hour Elliott Wave Chart

Attached Image (click to enlarge)

Attached Image (click to enlarge)

DXY Elliott Wave View 7.19.2017

Short term DXY (USD Index) Elliott Wave view suggests the decline from 6/20 peak (97.87) is unfolding as a Zigzag Elliott Wave structure. Down from 97.87 high, decline to 95.47 ended Minor wave A, and bounce to 96.51 high ended Minor wave B. Wave C is unfolding as an Elliott wave Impulse structure with extension where Minute wave ((i)) ended at 95.75, Minute wave ((ii)) ended at 96.2, and Minute wave ((iii)) ended at 94.47. Minute wave ((iii)) is subdivided into another impulsive wave of a smaller degree. Minutte wave (i) ended at 95.51, Minutte wave (ii) ended at 95.98, Minutte wave (iii) ended at 95.01, Minutte wave (iv) ended at 95.24, and Minutte wave (v) of ((iii)) ended at 94.47.

Currently Minutte wave ((iv)) is in progress to correct cycle from 7/10 high, and while pivot at 7/10 high holds, expect Index to turn lower again. We don’t like buying the Index and expect bounces to find offer in 3, 7, or 11 swing for more downside.

DXY 1 Hour Elliott Wave Chart

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SPX Elliott wave view: Showing impulse
July 19, 2017 By Hassan Sheikh (Edit)
Short term SPX Elliott Wave view suggests the rally from 5/18 low (2352.7) to 6/19 peak (2453.8) ended Minor wave 3. The pullback from 2453.8 to 2405.70 on 6/29 low ended Minor wave 4. Up from there, the rally is unfolding as an impulse Elliott Wave structure with extension. This 5 waves move could be Minute wave ((a)) of an Elliott wave zigzag structure where Minute wave ((i)) ended at 2431 and Minute wave ((ii)) ended at 2407.7.
Minute wave ((iii)) is subdivided into another impulsive waves of a smaller degree. Minutte wave (i) ended at 2432, Minutte wave (ii) ended at 2412.8 and Minutte wave (iii) ended at 2463.5. Below from there Minutte wave (iv) ended at 2450.34 and above from there Minutte wave v of ((iii) is in progress towards 2466.82-2471.8 area. Afterwards, the Index should pullback in Minute wave ((iv)) before further upside, provided that pivot at 2405.70 low remains intact.
In case of further extension in Minutte wave (v) of ((iii)), the index could extend to (v)=(i) target area at 2474.7-2480.4 before a turn in Minute wave ((iv)) happens. If the pullback turns out to be rather strong then the Index could already end the cycle from 6/29 low (2405.7) as an Elliottwave Flat structure, and it should then correct the cycle from 6/29 low before the rally resumes. We don’t like selling the Index and favors more upside as far as pivot at 2405.70 low remains intact.
SPX 1 Hour Elliott Wave Chart

Keep in mind that the market is dynamic and the view could change in the mean time. Success in trading requires adequate risk and money management, as is the understanding of Elliott Wave theory, cycle analysis and correlation. We have developed a very sensitive trading strategy that defines entry, stop loss and take profit levels with high accuracy and allows you to take risk free position shortly after taking it by protecting your wallet. If you want to learn all about it and become a professional trader, register now and get Free 14 day trial.

USDCAD Trade from 7/11 Live Trading Room

USDCAD Trade Video Clip from July 11th Live Trading Room
Below is a video clip of USDCAD Short Trade before Bank of Canada rate announcement on July 11th in Live Trading Room

Video link
Prior to this live trade on July 11th, we wrote an article 6 days earlier titled: USD Forecast and BOC Meeting Next Week. In this article, we argue that USDCAD is showing a bearish sequence and thus whatever the BOC decision will be, we favor the short side.

USDCAD 1 Hour Elliott Wave Chart on July 11th

We sold the pair at 1.2943 and set a target profit of 1.273 for a 3:1 Reward to Risk ratio. We hit our profit target on July 13th for a 213 pips.
We hold Live Trading Room daily at 7 AM EST / 11 AM GMT and Plus Live Trading Room at 8 AM EST / 12 PM GMT. Join us daily to get trading idea and learn how to execute trades using our technique of 3, 7, and 11 swing. Members will also receive a trading journal with entry, stop, and limit. Try our service 14 days FREE to get started and you will get access to Live Trading Room, Elliottwave charts for 52 instrument, live sessions, educational videos exclusive to members, 24 hour chat room, and more today.

DXY Elliott Wave View: Bounce in progress

Short term DXY (USD Index) Elliott Wave view suggests the decline from 6/20 peak (97.87) is unfolding as a Zigzag Elliott Wave structure. Down from 97.87 high, decline to 95.47 ended Minor wave A, and bounce to 96.51 high ended Minor wave B. Wave C is unfolding as an Elliott wave Impulse structure with extension where Minute wave ((i)) ended at 95.75, Minute wave ((ii)) ended at 96.2, and Minute wave ((iii)) ended at 94.47. Minute wave ((iii)) is subdivided into another impulsive wave of a smaller degree. Minutte wave (i) ended at 95.51, Minutte wave (ii) ended at 95.98, Minutte wave (iii) ended at 95.01, Minutte wave (iv) ended at 95.24, and Minutte wave (v) of ((iii)) ended at 94.47.

Currently Minutte wave ((iv)) is in progress to correct cycle from 7/10 high as a double three Elliott wave structure towards 95.05 - 95.15. While pivot at 7/10 high holds, expect Index to turn lower again. We don’t like buying the Index and expect bounces to find offer in the above area for more downside or 3 waves pullback at least.

DXY 1 Hour Elliott Wave Chart

Attached Image (click to enlarge)

Attached Image (click to enlarge)

JPM Elliott Wave Bullish Structure

The Elliott Wave view for JPMorgan Chase (NYSE: JPM) suggests the rally from February 2016 low (52.5) to 03/01/2017 peak (93.98) have ended wave (3). The pullback from there unfolded as zigzag ABC structure which ended wave (4) at 06/01/2017 low (81.79). Up from there, the stock rallied in another zigzag structure before ending that short term cycle after reaching extreme on 07/06/2017 peak (94.51).
Therefore, JPM made new all time highs and it’s now showing 5 waves from 2016 low and still looking to reach the minimum target at $100.5. The stock can either rally from current levels as it already did 3 waves pullback and reached short term equal legs area 90.9 – 89.39, or the correction can still extend further toward the 50 – 76.4 Fibonacci retracement before finding buyers again to rally to new highs or bounce in 3 waves at least.
However if JPM fails to make new highs and the pivot at June low gives up, then the stock could be still in wave (4) doing an Irregular Flat correction which can take it toward 82-97 area before being able to resume the rally.
JPM 4H Chart 07/20/2017

The market conditions have changed over time, so instruments can now be trending higher or lower in series of 3 wave sequences rather than impulsive sequence and this can be frequently seen in the forex market. No one is perfect and we don’t claim to have 100% accuracy, but a system with high accuracy acts as a great trading tool because forecasting is a process of continuous adjustments. A waver (trader) needs to accept when an idea doesn’t work out and adjust to new data.

We will be soon launching a new plan covering Stocks & ETFs , so if you trade these instruments and interested in getting our updates then you can start by learning the basics of the Elliott Wave theory.
If you enjoyed this article, feel free to check our Technical Blog to read more posts. You can also take this opportunity and try our services 14 days for FREE to learn how to to trade forex, indices, commodities and stocks using our blue boxes and the 3, 7 or 11 swings sequence . You will get access to our current 52 instruments updated in 4 different time frames, Live Trading Room and 2 Live Analysis Session done by our Expert Analysts every day, 24-hour chat room support and much more.

DXY Elliott Wave View: Resuming Downside

Revised short term DXY (USD Index) Elliott Wave view suggests the decline from 6/20 peak (97.87) is unfolding as a double three Elliott wave structure. Down from 97.87 high, decline to 95.47 ended Minor wave W, and bounce to 96.51 high ended Minor wave X. Wave Y is unfolding as another double three Elliott wave structure of a smaller degree where Minute wave ((w)) ended at 94.47 and Minute wave ((x)) ended at 95.17. The Index has broken below 94.47 suggesting Minute wave ((y)) lower has started. Down from 94.47, Minutte wave (w) ended at 94.09, and Minutte wave (x) is in progress to correct cycle from 7/20 peak before Index resumes lower. We don't like buying the proposed bounce and expect sellers to appear after Minutte wave (x) bounce is complete in 3, 7, or 11 swing as far as pivot at 95.17 stays intact.

DXY 1 Hour Elliott Wave Chart

Attached Image (click to enlarge)

Attached Image (click to enlarge)

ZN (10 Year Treasury Note) and SPX

Many traders around the World keep picking the top in Indices and fail to capitalise on the trend which is to the upside. Recently, we did a blog to explain World Indices could see another huge peak around 2020 2022, of course there would be corrections in between but they should offer nothing more than a buying opportunity in the sequence of 3, 7 or 11 swings. Advantage of trading with technique is that even when the trend is extreme, you are trading with a defined risk and get a chance to eliminate risk on the trade as the market bounces from extreme areas after 3 swings, 7 swings or 11 swings. In this video we explain the relationship between ZN (10 Year Treasury Note) and SPX.
ZN (10 Year Treasure Note) and SPX Overlay

Above chart shows ZN (10 Year Treasury Note) has ended the cycle from 2007 low and most likely from 2000 low as well and as far as bounces fail below 2016 and more importantly below 2012 peak, 10 year note prices can drop towards 117 114.19 area to finish correcting 2000 cycle and then turn higher again for another monthly cycle or make a larger 3 waves bounce at least. We can see in the above chart that 10 year note formed a peak in 2012 and dropped and SPX rallied. Then we saw another secondary peak in 10 year note in 2016 which was a low in SPX and caused another rally. While below 2016 peak, 10 year note prices should drop further and that should cause SPX rally to extend and it could reach as high as 3133 area by the year 2020 22. Therefore, we dont like picking the tops in Indices and expect buyers to appear in the dips after 3, 7 or 11 swings. When 10 year note prices reach 117 114.19 area, Indices would have a chance to form a huge peak and start a larger pull back and that should be a good time to buy 10 year T-note.

ZN (10 Year Treasury Note) and SPX Video

NZDUSD Trade from 7/20 Live Trading Room

NZDUSD Trade Video Clip from July 20th Live Trading Room
NZDUSD 1 Hour Elliott Wave Chart

We went long at 0.733 on July 20th and hit the 100 pips target profit the next day.
We hold Live Trading Room daily at 7 AM EST / 11 AM GMT and Plus Live Trading Room at 8 AM EST / 12 PM GMT. Join us daily to get trading idea and learn how to execute trades using our technique of 3, 7, and 11 swing. Members will also receive a trading journal with entry, stop, and limit. Try our service 14 days FREE to get started and you will get access to Live Trading Room, Elliottwave charts for 52 instrument, live sessions, educational videos exclusive to members, 24 hour chat room, and more today.

YM_F Dow E-mini Future Elliottwave View: Correction in progress

Short term YM_F (Dow E-Mini Future) Elliott Wave view suggests the rally from 6/29 low is unfolding as a double three Elliott wave structure and ended with Minor wave W at 21628. Index is currently in Minor wave X pullback to correct cycle from 6/29 low in 3, 7, or 11 swing. Structure of Minor wave X is also unfolding as a double three Elliott wave structure where Minute wave ((w)) ended at 21416 and Minute wave ((x)) ended at 21624. Minute wave ((y)) of X is in progress towards 21359 - 21409 area before Index resumes the rally or bounce in 3 waves at least. We don't like selling the Index and expect support to appear at 21359 - 21409 area (if reached) for 3 waves bounce at least.

YM_F 1 Hour Elliott Wave Chart

Attached Image (click to enlarge)

Attached Image (click to enlarge)

Hang Seng (HSI-HKG) forecasting rally & buying the dips

Hello fellow traders . The Video below is a short capture from the Plus Daily Technical Video held on July 4th by Hendra Lau. Hendra presented Elliott Wave count and explained our forecast and trading strategy for Hang Seng.


Hang Seng Plus Daily Technical Video held 07/04 2017


As our members know, Hang Seng was showing bullish swings sequences in higher time frames. Consequently, we recommended our members not to sell the index and keep buying the dips in 3,7,11 swings. As Hendra explained in the video, X red connector was expected to complete at the equal legs from the peak. We have advised our members to buy dips at 25297-24965.7 area, when invalidation level was at 24961.3.
Eventually, the index found buyers and made nice rally reaching new highs. As a result,weve got nice profits and poositions are risk free at this stage. Keep in mind market is dynamic. If youre interested in the future path of Hang Seng or in any of the other 50+ instruments we cover, join us now. You can find Elliott Wave analysis in the membership areaof EWF. If not a member yet, Sign Up for Free Trial now.
Hang Seng ( $HSI-HKG) 1 Hour Asia Chart 07/04 2017

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Dow Future Elliott Wave View: Resuming Higher

Short term YM_F (Dow E-Mini Future) Elliott Wave view suggests the rally from 6/29 low is unfolding as a double three Elliott wave structure and ended with Minor wave W at 21628. Down from there, Minor wave X pullback unfolded as a running Elliott Wave flat. Minute wave ((a)) ended at 21457, Minute wave ((b)) ended at 21624, and Minute wave ((c)) of X ended at 21444. Index has since made a new high suggesting the next leg higher has started. Up from 21444 low, Minutte wave (a) ended at 21640. While Minutte wave (b) pullback stays above 21444, expect Index to extend higher again.

Alternatively, the new high at 21640 could still be Minute ((b)) and part of a flat from 21628 high. In this case, we could still see Minute wave ((c)) lower in 5 waves before Index resumes the rally. We don't like selling the Index and expect more upside against 21444 low in the first degree.

Dow E-Mini Future 1 Hour Elliott Wave Chart

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Attached Image (click to enlarge)

Dow Futures Elliott Wave View 7.27.2017

Short term YM_F (Dow E-Mini Future) Elliott Wave view suggests the rally from 6/29 low is unfolding as a double three Elliott wave structure and ended with Minor wave W at 21628. Down from there, Minor wave X pullback unfolded as a running Elliott Wave flat. Minute wave ((a)) ended at 21457, Minute wave ((b)) ended at 21624, and Minute wave ((c)) of X ended at 21444. Index has since made a new high suggesting the next leg higher has started. Up from 21444 low, Sub Minutte wave a ended at 21640. And Sub Minutte wave b pullback ended at 21524, while above there expect Index to extend higher again.

Near term focus remains towards 21719-21769 100%-123.6% extension area from 21444 low to end the Minutte wave (w) higher. The index then has scope to see a pullback, which should then find buyers again in sequence of 3, 7 or 11 swings for further upside provided the pivot at 21444 low remains intact. We dont like selling the Index and favors buying the dips against 21444 low in the first degree. If pivot at 21444 low fails, then the move higher from 6/29 (21138) can be seen as a 5 waves diagonal. In this case, Index should pullback in 3, 7, or 11 swing to correct cycle from 6/29 low before the rally resumes.

Dow E-Mini Future 1 Hour Elliott Wave View

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Attached Image (click to enlarge)

DAX Elliott Wave View: More Downside

Short term DAX Elliott Wave view suggests the decline from 5/15 high is unfolding as a double three Elliott wave structure. Down from 5/15 peak, Primary wave ((W)) ended at 12303 as a Flat and Primary wave ((X)) bounce ended at 12672. Primary wave ((Y)) is currently in progress and unfolding as a triple three Elliott wave structure. Down from 12672 peak, Intermediate wave (W) ended at 12373.5, Intermediate wave (X) ended at 12567, Intermediate wave (Y) ended at 12180.5 and Intermediate second wave (X) ended at 12339.48. Near term, while bounces stay below 12339.48, expect the Index to resume lower towards 11878.65 – 12030.11 area to end cycle from 5/15 high. Afterwards, from that area, expect the Index to at least bounce in 3 waves to correct cycle from 5/15 high.

DAX 1 Hour Elliott Wave Chart

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Attached Image (click to enlarge)

SPX500 Bullish Elliott Wave Sequence

SPX500 move up from 3/27 (2322) low is proposed to be unfolding as a double three Elliott wave structure when rally to 6/19 (2453) completed wave W and dip to 6/29 (2405.74) completed wave X. Up from there, Index rallied in 5 waves to 7/27 (2484) which completed wave ((a)) of Y and now the Index is showing 5 swings up from 3/27 low. 5 swings is an incomplete sequence and calls for more upside to complete 7 swings sequence. Index is currently in wave ((b)) correcting the cycle from 2405.74 low. This pull back is expected to unfold as a zig-zag Elliott wave pattern and while below 7/31 (2477), SPX500 has scope to trade lower towards 2453.73 – 2438.81 area to complete wave ((b)). From this area, SPX500 should turn higher to resume the rally in wave ((c)) of Y towards 2537 – 2568 area or bounce in three waves at least. In case the bounce from the above mentioned area fails to make a new high, then Index could turn lower and do a 7 swings pull back in wave ((b)) before starting wave ((c)) higher. We don’t like selling the Index and favor buying the dip towards 2453.73 – 2438.81 area looking for a target of 2537 area or a 3 waves bounce at least to get into a risk free position.
SPX500 4 Hour Elliott Wave Chart

SPX500 Potential buying area

NASDAQ Composite Index should pullback soon
The following video/chart shows NASDAQ composite index. The index has a tremendous rally since the lows around 1975 which is pretty close to the zero level. The index has reached the bottom of the blue box at 6219 area. The question then is whether the index will extend higher or start correcting lower as the minimal target has been reached. As we often say, Elliott wave theory by itself is not enough. In this case, we can see that from the zero line, we can count the index as a completed ABC. However, we can also count it as an incomplete ABC with a black((4)) still to happen. In the Elliott wave theory, any five waves structure always at one moment is a three wave move. It is therefore too early at this stage to determine if the rally will develop into a five waves move.
In Elliottwave-forecast.com, we have implemented new ideas and tools to make the theory a more reliable tool. We use cycles, sequences, distributions and momentum indicators to increase the accuracy of Elliott wave theory. As we explain in this video, the RSI (Relative Strength Index) indicator is still showing a divergence compared to the peak in 1999. One of the rules that we introduced in the new Eliott wave theory is that a three waves move can not have divergence in any single time frame. Looking at Nasdaq quarterly chart, we can observe the divergence between momentum and price action. Thus, the index still has scope to extend into the areas of 7431 minimal or even reach the 9391 area before the 2009 rally is complete.
The five waves move in blue degree is now about to end. But we feel very comfortable to say that the pullback will be another buying opportunity. It is very easy to trade following our forecast. We always prioritize the trend and we use a distribution system and a series of pivots and cycles to prioritize the trend. In conclusion, even though the index has reached the minimal target, a multi market correlation and simple indicator like the RSI are calling for a pullback soon into a wave four but more upside to follow afterwards.
If you enjoy this video, we invite you to take the 14 days free trial where you can learn all these new techniques and receive an honest Elliott wave forecast. We listen to the market and don’t force five waves. We analyze the market structures, sequences, and provide the best possible and more aggressive forecast with the trend.
Nasdaq Long Term Analysis Video
Long Term Nasdaq Elliott Wave Path