Thursday, January 31, 2013

EUR/CHF ~ 31 January 2013

The resistance at 1.25ish was too strong to be broken at the first attempt:


Support is at 1.217ish and then 1.20. If 1.217 holds, we could see another effort to break 1.25. If this happens, a rally to 1.275 and 1.32 should follow.

SPX ~ Elliott Wave Count ~ 31 January 2013

Below you can see my long-term count. It's still the same as when I first posted it (I think in 2009).


As you can see, the market is entering the area where cycle wave d should conclude. Once wave d is finished, wave e should unfold and lead the market to new lows.

For a more detailed count, please read this post.

Monday, January 28, 2013

EUR/USD ~ 28 January 2013

The EUR/USD hit 1.35 on Friday:


The medium-term trend is up as long as we stay within the channel.

Tuesday, January 22, 2013

SPX ~ Elliott Wave Count ~ 22 January 2013

The SPX is now less than 7 % away from a new all-time high. The Dow is even closer, trading about 4 % below its 2007 highs:


I've been bullish and calling for a bull market top around 1600 since mid 2010. Already in my last update in November I mentioned that the bull market might soon be over since we were approaching 1600. Back then, I thought that the market might fall short of my target. However, two months later, I think that we could still make it.

The count above shows an ending diagonal in the (C) wave position to conclude cycle wave d. My preferred target for this count is 1520ish. After that, cycle wave e to new lows (below 666) should follow. There is a slight variation to the ending diangonal count which allows for a rally to 1600 (triple zigzag (not shown in the chart)).

If we get a convincing break below 1350ish, a new bear market (wave e) is most likely underway. As long as we stay above it, I remain cautiously bullish.