Wednesday, 1 June 2016

Blog post: ASX/SPI 200 upwards correction from Feb low counts as complete, turning lower

As I tweeted earlier today when the market was some 50 points higher, the upwards correction from the February low counts as complete, and the next trend should be down, to well beyond that Feb low. 4 hour chart illustrates the Elliott Wave count for the upwards correction.

Daily chart shows that the apparent turn lower has taken the market down beneath a 12 month old band of resistance.

Weekly line chart EW count suggests the market is beginning a third wave lower, toward 4000 and likely even lower.

Monthly chart shows how the weekly chart wave count fits in to the larger degree count, which counts best to me as a zigzag correction from the 2007 peak.