I read that Christine Lagarde was out warning the world about the inherent risks in the global economy today.
It is all the more comical because she tempered her statement,
By saying that 2017 was on track to be the best year of the decade so far.

Well of course it is!
2007 was the best year of the decade before the last collapse happened.
1999 was a fantastic year before the dotcom bubble burst.
And I hear that 1928 was a stellar year, choc full of good news and great achievement!

Economies always look great right before the bell tolls!
This time is no different!

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

I have illustrated the ending diagonal idea this evening,
Showing the five waves within wave '5' blue and the ending diagonal structure.

This market is so extended, that I have run out of labels!

The price has dropped out of the contracting trendline structure this evening.
Could this be the beginning of the end for the stock market?
I have to wonder this, given the extended nature of the market right now.

If we begin to see an impulsive structure develop to the downside from here,
That will increase the odds that a significant high is in,
The 4hr momentum indicators are steadily building a bearish divergence now,
And the price has now reached the upper trendline of the larger trend channel on the 4hr chart.

So the bearish signals are most definitely present.

For tomorrow;
Watch for an impulse move to the downside,
A break below 22731 will increase the odds of a market peak.

My Bias: Long to a new all time high above 1827.
Wave Structure: Impulse structure to a new high.
Long term wave count: wave (3) above 1666.

GOLD has now created a higher low above wave 'ii' brown on the short term chart.
The wave structure is now primed for a significant rally in wave (iii) of [iii].

To put this in perspective,
The target for wave [iii] green lies at about 1500,
This is where wave [iii] reaches 161.8% of wave [i] green.

If the price carries above 1313, the previous wave (b),
Then we can confirm the price has turned up into wave [iii].

For tomorrow;
Watch for 1284.86 to hold and for a rise into the upper trendline on the short term chart.
Wave 'iii' should begin to take hold now.

My Bias: topping in a large correction wave [4].
Wave Structure: ZigZag correction to the downside.
Long term wave count: Declining in wave 'c' target, below $20

I have shown an alternate wave count on the short term chart
which would allow for wave [ii] brown to develop further into a large flat correction.

This alternate wave count might better explain the large rally this week.
So if the decline off Wednesdays high does not develop in an impulsive fashion,
it will tip the odds in favor of the alternate wave count.

The whipsaw action in the middle of the day
does confuse matters slightly for the current wave count,
Further declines are called for in order to validate the current wave count.

For tomorrow;
Watch for immediate declines in a possible wave 'iii' pink.

Enda Glynn
http://bullwaves.org
I am an Elliott wave trader,
I have studied and traded using Elliott wave analysis as the backbone of my approach to markets for the last 10 years.
I take a top down approach to market analysis
starting at the daily time frame all the way down to the 30 minute time frame.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.