SP 500 - Bear balls on fire

Last 8 weeks  SP500 rose slowly and steadily. Currently I don't expect 

deeper retrace before hitting the 1235 new high. Yes higher prices. It is also 161.8% Fibonacci of i or A wave.

Since 1007 low the market has risen 5 weeks as initial impulse, then 3 weeks corrected. After the 1038 support we have 8 up- all Fibonacci numbers. 5+3+8=16. Next number in the sequence is 21. So if we can reckon on that count need at lest 5 more weeks to extend, which makes the week  11/22 -11/28/2010.

Good luck!

AEX- Elliott wave update

AEX is one of my favourite European Indexes. Since May the price chose the wide range lateral track. Technicaly the price is still in that lateral track channel, where  bulls and bears are still regrouping. Whose group is going to take advanse; we"ll make us clear later this year. According to the current Elliott count we must be in the game already, because the iii of a (3) or (c) is in progress. And bigger pattern "flat" has already finished, marking (c) wave(305.17) as main low. The projection of the next leg up is at least to 61.8% Fibo of " i " wave- around 350.

My favourite charting tool shows the same target as well.

Good luck!

GOLD Elliott Wave Update

Since the last update on Gold I relabeled the waves, but the direction stays the same. Currently there's nothing that points change of the main trend. Friday was the 47 th day of the beginning of the 3th wave, so we can expect at least eight more days rally, and will not see any dramatic trend change. Even in case of a very sharp correction on daily basis we will be able to go long again and buy the dip.

SP 500

 Despite the ongoing weakness in the real economy, last week was very good and positive for most of the world indexes. 
  As I said in few posts ago I am working on the assumption that the main (bullish) trend resumes and the correction (1006 low in 7/6/2010) marked the "B" Primary wave in my count. There is a small possibility for deeper retrace into 50.0% of the entire move up since March 2009, but it's too early to think and talk about it. Now we are chasing the pointed 1170 target. 

DAX -Elliott Wave Update

    Very interesting and rising wedge looking pattern is forming on daily and weekly base. My first look defined that pattern as trend reversal, but the the whole formation's wave structure  put some bullish tune.
     Last week closed exactly below  6213, relatively near the week high (6235). After the positive week the market opened higher in Monday as I expected. First possible target matches with 6420 price. It's worth to be long now.

The wave structure on daily and 4 hour base defines that pattern as nothing more than bullish "running flat" for now. The plunge above the current resistance levels is expected in September.

Good luck trading!