DOW short term Elliott wave analysis

Κυματική Ανάλυση στον Γενικό Δείκτη ΧΑ
March 24, 2013
Gold prices show weakness
March 26, 2013

Dow is found at the same critical point as S&P. Volatility is high as news related with Cyprus bailout, European debt fears and stability could endanger the bullish momentum that currently prevails in US markets. The new all time highs in Dow are fulfilled while the entire move of the index is near its end.

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The short term wave analysis in DOW shows us that the recent decline from 14539 is not impulsive. On the other hand, the rise from 14382 to the new high 14546.82 is impulsive. This could be the entire wave (V), but we feel it  is more probable that this is only wave (i) of (V).

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Therefore our expectations of another leg up are valid according to and the . Concluding, we remain bullish as long as prices remain above Friday’s low. For more help trading this index don’t hesitate to contact us.

As always, thank you for taking the time to catch up on my thinking.

The Elliott wave principle is a form of technical analysis that some traders use to analyze financial market cycles and forecast market trends by identifying extremes in investor psychology, highs and lows in prices, and other collective factors. Ralph Nelson Elliott (1871–1948), a professional accountant, discovered the underlying social principles and developed the analytical tools in the 1930s. He proposed that market prices unfold in specific patterns, which practitioners today call Elliott waves, or simply waves. Elliott published his theory of market behavior in the book The Wave Principle in 1938, summarized it in a series of articles in Financial World magazine in 1939, and covered it most comprehensively in his final major work, Nature’s Laws: The Secret of the Universe in 1946. Elliott stated that "because man is subject to rhythmical procedure, calculations having to do with his activities can be projected far into the future with a justification and certainty heretofore unattainable."

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Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.