Tuesday, 12 May 2015

S&P 500 futures down sharply, re-testing trend line support

Daily chart shows that the S&P 500 is down sharply from the cash market close of 2105, and is re-testing trend line support.

This morning Oz time I tweeted "S&P 500 4 hour chart. Leading diagonal beginning its 5th wave lower? If so, likely the first five waves down of MANY". I've labelled the waves on the four hour chart below. Five waves down would define the trend as down, and have me looking for an upwards correction followed by further weakness. The market is not there yet. Let's see.

Hang Seng forming a Head and Shoulders top? 60%+ decline beginning?

The Hang Seng appears to be forming a Head and Shoulders top.

Zooming out shows the market turning decisively lower at the top of a 3.5 year, almost 4 year old trend channel.

Zooming out further shows my long term Elliott Wave count and the implied market action going forward. Namely a 60%+ decline in the next couple of years.