Wednesday, 24 June 2015

ASX 200 daily chart testing trend line resistance, 4 hour chart wave count still looks to be set for swift decline

Daily chart shows the ASX 200 testing trend line resistance, with further resistance not far overhead.

The Elliott Wave count on the 4 hour chart still looks to be setting up for a decline in a 3rd of a 3rd wave (ie. accelerated, extended, relentless). The market could pop higher again and still retain the wave count, so long as it does not beat 5807, though the count would become less likely if the market beats 5720 (confluence of Fibo resistance, not illustrated).

S&P 500 daily chart choppy, 4 hour chart shows 5 waves down, 3 waves up

To state the bleeding obvious, the daily chart for the S&P 500 is choppy. I have been running with the illustrated parallel trend lines for some time, and right now I don't have anything better to go with at this timeframe.

4 hour chart shows 5 waves down and 3 waves up, suggesting another 5 waves down is imminent. There is a slight overlap between the action of wave 4 and the low point of wave 1, which is against the rules of Elliott Wave, but forgivable in a leveraged futures market, and moreso in this case as the highly correlated Dow sports a clean 5 waves down, as illustrated several times recently eg. here.

Hang Seng retesting neckline of Head and Shoulders top