Sunday, 1 November 2015

ASX 200 lower from resistance, next leg lower beginning?

Monthly chart first, all sessions. No reason yet to question this Elliott Wave count, indeed I suspect the market is just beginning a 3rd wave lower, similar to the one in 2008.

Daily chart zooms waaay in, and shows that last week the market turned lower from near horizontal resistance, at a classic EW stopping point near the 4th wave of the previous 5 wave sequence (waves not labelled but they should be clear enough to anyone who cares). Does the market have the strength to rally and test the down trend line? Let's see. If not, then favour a big 3rd wave lower is beginning now, as discussed above.