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Elliott Wave Financial Price Forecasting

New Stock Index Video 2019 Released! Part I/III

by WaveTrack International| January 1, 2019 | No Comments

STOCK INDEX VIDEO Outlook 2019 - Begins With More Declines – Terminal Lows by Q1-2019!

Stock Index Video 2019 Part I/III

2018’s 4th WAVE CORRECTION APPROACHING A TERMINAL LOW IN Q1 2019!

This report combines ELLIOTT WAVE with updated SENTIMENT & ECONOMIC INDICATOR STUDIES

We’re pleased to announce the publication of WaveTrack’s Annual 2019 video updates of medium-term ELLIOTT WAVE price-forecasts. Today’s release is PART I, Stock Index Video – Parts II & III will be published during January/February.

PART I – STOCK INDICES
• PART II – COMMODITIES
• PART III – CURRENCIES & INTEREST RATES

2019 Begins With More Declines – Terminal Lows by Q1-2019!

It looks like 2018 set quite a few records! The exponential advance that carried over from December 2017 into January ’18 finally reached a terminal peak on January 31st at 26616.70, Dow Jones (DJIA) and 2872.87, the S&P 500 – both then staged an inverted ‘V’-shaped reversal decline that initially shaved -4.6% off values. CNN reported it was the ‘scariest day on Wall Street in years…the biggest decline since August ’11…the Dow plunged almost 1,600 points – easily the biggest point decline in history during a trading day’. That was only the beginning though! – declines continued through February until it formed a low 2-weeks later but by that time, indices were down by -11.8% per cent.

Volatility continued afterwards – it only took another 2-weeks for the S&P 500 to trade up by +10% per cent – which was just prior to a downswing into the early-April lows, a decline of -8.8% per cent! By that time, sentiment turned really bearish – Investors Intelligence reported that ‘Bulls’ declined from 47.6 to 42.2 which was the lowest bullish reading since right before the US presidential election of November 2016. The number of ‘Bears’ rose marginally but remained at a low historical figure of 18.6.

What did the markets do next?

They ran higher albeit at a more modest pace but advancing by +15.0% per cent until it reached the late-September/early-October highs – then bam! The Dow and S&P collapsed lower.

USA Today reported ‘the U.S. stock market suffered its biggest October decline since the 2008 financial crisis, prompting shaken investors to reassess the staying power of a bull run that began more than nine years ago’. Following rallies into November, markets declined again in early-December. London’s Financial Times reported ‘Volatility leaves Wall Street set for worst December since Great Depression’. Christmas Eve’s (December 24th’s) decline was particularly severe as the Dow (DJIA) gapped lower by 667 points delivering a -19.8% per cent psychological punch from October’s high. The S&P 500 registered a decline of -20.2% per cent, the threshold that many economists define as a ‘bear market downtrend’.

Since those lows, the major indices have recovered by +7.5% per cent.

Drivers & Sentiment

The volatile price-swings of 2018 and the net declines from January’s peak are blamed on the Federal Reserve’s continued monetary tightening and interest rate hiking programme, U.S. President Trump’s trade war with China and its allies and concerns of a global economic recession forewarned by the severe flattening of the U.S. yield curve.

We know just how scared the markets are right now through various sentiment readings. The latest data from AAII showed bulls collapsing 17pts to only 20.9 from the previous week’s level of 37.9. That was the lowest figure since May ’16 – wow! Then on Dec. 19th, Investors Intelligence reported Bulls declined from 46.7 to only 38.3 although most of this downsizing went to the middle-voting with Bears rising 1pt to 21.4.

Snippets of Bank of America/Merrill-Lynch’s fund manager survey for December have appeared on the internet. Highlights include a reading of ‘extreme bearishness’ in equities, a huge jump from long-equities which is now negative -15ppt to long bonds at +23ppt and defensive trades in Consumer Staples at +13ppt (approx.). What does this tell us? – it suggests the equity/stock market is priming itself for a major low although the report itself says that it does not consider its readings as bearish enough to trigger a buy signal!

Review – 2018

With such volatile price-swings over the last year, you might think they’re impossible to predict, but in actual fact, the opposite is true! – THEY ARE PREDICTABLE!

Ray Dalio, the American billionaire and hedge fund manager of Bridgewater Associates sent out an e-mail to clients in December. It had this to say: ‘As you probably know by now, I believe that everything (i.e., all reality) works like a machine with cause-effect relationships that drive what happens, and that to be effective it’s essential to have a good mental model of how those machines/realities work and to have good principles for dealing with them well’. Sounds like an Elliott Waver to me! – ha! But in reality, Ray Dalio looks through the economic lens model – productivity growth, the short-term/long-term debt cycles in coming up with his concept of how the future looks.

But our resonance-signature prefers to work with the same mechanistic principles of ‘cause-effect’ using a more fluid, non-linear/fractal methodology – the ELLIOTT WAVE PRINCIPLE. This model has correctly identified almost all the price-swings of 2018 –

Stock Index Video 2019 - SP 500 - Track Record - 28th January 2018

fig #1 Jan. 28th – S&P 500 running exponentially higher but already into upside target range of 2861.75+/- to max. 2912.00+/- that ends the entire advance from July ’16

Stock Index Video 2019 Track Record - fig #2 Feb. 9th - SP 500 forms a peak at 2878.50 then collapses down to 2529.00

fig #2 Feb. 9th – S&P 500 forms a peak at 2878.50 then collapses down to 2529.00

fig #3 May 8th - S&P 500 forms secondary lows at 2594.62 – upside projections to 2828.65+/-

fig #3 May 8th – S&P 500 forms secondary lows at 2594.62 – upside projections to 2828.65+/-

Stock Index Video 2019 - fig #4 August 29th - S&P 500 trading higher but approaching upside targets towards 2925.85+/- then forecasting collapse lower to 2458.50+/-

fig #4 August 29th – S&P 500 trading higher but approaching upside targets towards 2925.85+/- then forecasting collapse lower to 2458.50+/-

Stock Index Video 2019 - fig #5 Dec. 21st - S&P 500 reached and even surpassed 2458.50+/-

fig #5 Dec. 21st – S&P 500 reached and even surpassed 2458.50+/-

What Next? Preview for 2019 – U.S. Benchmark Indices

There’s a lot of competing aspects to consider this year and to gain a realistic glimpse of what’s to come, we’re going to have to separate the proverbial wheat from the chaff. That means being unbiased and relying on the facts.

The dominant Elliott Wave theme is that September/October’s highs ended a five wave impulse uptrend that began from the financial-crisis lows of Oct.’08/March ’09 – but is this correct? If the S&P 500 and Dow Jones indices are analysed in isolation, then there is a reasonable chance this ended a five wave ‘structure’. But when examining the same pattern in log-scale and overlaying Fibonacci-Price-Ratio analysis to verify, the pattern begins to degrade – no confirmation is forthcoming.

Back in year-2000 at the height of the dot.com boom and several years later at the highs of October 2007, developed market indices formed corresponding terminal highs with Emerging Markets and Commodities – positive corrections combined with terminal Elliott Wave uptrends formed at the same time. They declined together in corrective synchronisation in the sell-offs that followed. But synchronised EW-pattern highs never happened in 2018. In fact, Emerging Markets and Commodities are still engaged in five wave uptrends that resumed in early 2016 and are far from complete. Yes, they began corrective downswings in 2018 but that’s all. But that means the secular-bull uptrend for U.S. and other global indices is still in upside progress!

This Year’s Stock Index Video Forecast Focus

This year’s 2019 Elliott Wave forecasts takes an updated look at these disparities but aligning them into a synchronised process over the next two-year period. Over 60 charts illustrate the intricate relationships between the U.S., European and Asian/Emerging markets. They combine to tell the same story – we’ve haven’t seen a major peak in the secular uptrend just yet! And even if you have doubts, take a look at some of the sentiment and economic indicators that form part of the holistic viewpoint – the Elliott Wave overlay is pretty convincing!

Worst-Case Scenario

The Stock Index Video 2019 wouldn’t be balanced without a look at the more obvious Secular-Bear scenario. As a result, we’ve added some important slides into the mix. What this does is focus the negation levels at which point a nemesis decline is confirmed. For U.S. indices, price levels would need to break below the Feb.’16 lows whilst unfolding into a five wave impulse pattern to confirm the secular-bear scenario. So let’s see!

European Indices

One of the key aspects to the continued secular-bull uptrend is realised from examining the benchmark Eurostoxx 50 index. Its 2015-16 decline unfolded into a typical THREE WAVE CORRECTIVE PATTERN, i.e. a zig zag. Hence, the following advance into the Nov.’17 high didn’t break above the 2015 high. Consequently, this means there’s still a lot of upside potential to come over the next 18-24 month period, albeit European indices underperforming in 2018.

Emerging Markets + Asia – Australia – Japan

Emerging Markets along with many benchmark commodity markets are unfolding into the ‘INFLATION-POP’ schematic first postulated in these reports back in year-2010. Some indices haven’t broken above the old 2010-11 highs yet. However, this is again another strong indicator that secular-bull uptrends remain engaged to the upside.

New Stock Index Video 2019 – PART I/III

This ANNUAL 2019 VIDEO UPDATE for STOCK INDICES is like nothing you’ve seen anywhere else in the world. It’s unique to WaveTrack International, how we foresee trends developing through the lens of Elliott Wave Principle (EWP) and how its forecasts correlate with Cycles, Sentiment extremes and Economic data trends.

We invite you to take this next step of our financial journey with us – video subscription details are below. Just follow the links and we’ll see you soon!

Most sincerely,
Peter Goodburn
Founder and Chief Elliott Wave Analyst
WaveTrack International

Contents for the Stock Index Video – 68 charts

  • S&P 500 + cycles
  • Dow Jones Industrial Average + cycles
  • Russell 2000
  • Nasdaq 100
  • DJ Transportation Average
  • DJ Utility Index
  • S&P Price/Book Ratio
  • S&P Price/Sales Ratio
  • S&P CAPE P/E Ratio
  • VIX Volatility Index
  • AAII Bullish Sentiment
  • NYSE Advance-Decline
  • Consumer Sentiment
  • US GDP data
  • Eurostoxx 50
  • Xetra Dax 30
  • FTSE-100
  • MSCI Emerging Market
  • MSCI BRIC
  • Bovespa
  • Russia RTS
  • Sensex
  • MSCI China
  • Shanghai Composite
  • China Enterprises
  • MSCI Hong Kong
  • Hang Seng
  • Singapore Straits
  • Taiwan SE Weighted
  • ASX 200
  • Nikkei 225
  • Read more «New Stock Index Video 2019 Released! Part I/III»

    Merry Christmas and Joyous, Prosperous and Peaceful 2019

    by WaveTrack International| December 19, 2018 | 2 Comments

    Merry Christmas and Happy New Year 2019 to all of you by WaveTrack International!

    Merry Christmas and Happy New Year 2019 to all of you!

    Merry Christmas & a Joyous New Year 2019!

    We share one sacred planet,
    the warmth and light of one beautiful sun,
    the same air, earth, water and fire…
    we are but timely custodians of these finite resources for the next generation to come…

    Yet, in this season we are reminded that one resource we all share and need multiplies by giving…

    LOVE

    So we hope that wherever you are and whatever your faith, that your Festivities and New Year will reveal the many treasures of Peace, Love and Abundance.

    P.G. & the WaveTrack Team

    Announcement for our EW-Compass Subscribers

    Christmas/New Year Schedule

    This week’s Elliott Wave Compass Reports will be the last reports published for 2018!That’s Wednesday/Friday’s reports, Dec. 19th/21st ahead of the Christmas Festivities. The next EW-Compass will be published on Wednesday 2nd January 2019. If you have any questions next week, please send them in. We’re still here but working to meet deadlines for the publication of our annual 2019 Elliott Wave forecasts.

    The extent of tracking all four asset classes, so many contracts has expanded exponentially over the last few years. Mainly, driven by the demand from you, our customers! This has necessitated creating all the Elliott Wave charts into a THREE PART VIDEO SERIES. As a result Part I will focus on Stock Indices, Part II Commodities & PART III Currencies & Interest Rates.

    Seems like Part I might even be ready before year-end. Therefore, watch out for another e-mail message from us soon! Parts II & III will be published in January/February!

    SP500 + Nasdaq 100 = Bullish!

    by WaveTrack International| December 10, 2018 | 1 Comment

    SP500 and Nasdaq 100 holding above Oct/Nov. lows – Bullish!

  • The SP500 has been marked lower overnight. But current selling is expected to dissipate with levels holding above the late-October lows. However, then pushing higher over next few weeks into year-end
  • Read more «SP500 + Nasdaq 100 = Bullish!»

    Elliott Wave Theory Bullish – Dow Theory Bearish

    by WaveTrack International| November 27, 2018 | 6 Comments

    Dow Theory vs. Elliott Wave Theory

  • The Dow Jones Transportation Average is signalling a ‘Buy’ signal alongside the S&P 500 and Nasdaq 100. In contrast, Dow Theorists see downside potential if October lows are broken. Various sentiment metrics show extreme bearishness. However, we consider this a good bullish contrarian signal
  • Read more «Elliott Wave Theory Bullish – Dow Theory Bearish»

    Nasdaq 100 Heading for Major Support

    by WaveTrack International| November 21, 2018 | 3 Comments

    Nasdaq 100 Breaks October Low but Heading for Major Support

  • Tuesday’s early trading sees the Nasdaq 100 futures attempting to break below the October low of 6580.50. This simply extends the early-October decline into a five wave diagonal pattern. A major low is being approached towards 6457.70-6416.00+/-.
  • Read more «Nasdaq 100 Heading for Major Support»

    STLG/USD Declines Following Cabinet Brexit Approval

    by WaveTrack International| November 15, 2018 | No Comments

  • Wednesday night’s/Thursday morning’s news confirms U.K. Cabinet approves Prime Minister Teresa May’s Brexit plan. But rumours circulate over a ‘vote-of-no-confidence’. This would challenge her continued leadership. STLG/USD declines hard but tests downside support above 1.2696
  • Read more «STLG/USD Declines Following Cabinet Brexit Approval»

    NYSE Composite Index – Latest Development

    by WaveTrack International| November 6, 2018 | No Comments

    NYSE Composite Index – Fib. 100% Equality Ratio in Waves (iii) – (v) – No ‘Extended’ Wave

    The Elliott Wave pattern development within the third phase of U.S. stock index declines during September/October’s sell-off varied according to each index’s performance from earlier this year. For example, the large-caps like the SP500 and Dow Jones (DJAI) declined into three wave patterns. In zig zags to be precise, from the late-Sep./early-Oct. highs as wave [c] within a developing triangle. These lows terminated in late-October but above the February lows. In this way reflecting their outperformance during April’s strong advances that broke above the January highs.

    Other indices like the underperforming Russell 2000 small-cap index declined during September/October’s sell-off into a five wave impulse pattern. This reflected its underperformance and an entirely different corrective pattern. In this case, a running flat, unfolding from last January’s high.

    The NYSE Composite index was one of the underperforming indices for this year. It unfolded into a zig zag pattern, [a]-[b]-[c] and one of the exceptions by breaking below the Feb’18 lows in wave [c] ending at 11820.32 – see fig #1.

    NYSE Composite Index - 60 mins. - www.wavetrack.com

    NYSE Composite Index – 60 mins. – www.wavetrack.com

    Wave [c] unfolded into a necessary five wave impulse pattern from September’s high of 13261.76 subdividing (i)-(ii)-(iii)-(iv)-(v). What was interesting from a Ratio/Proportion basis was that there was no ‘extended’ wave in this sequence. Rather, waves (iii) and (v) measured equally by a fib. 100% equality ratio. That’s somewhat unusual because R.N. Elliott stated that one wave must ‘extend’ or measure larger than the other two. But occasionally, this hasn’t occurred as this example proves. Although this is statistically uncommon, it’s enough to qualify his statement as a ‘guideline’ rather than a ‘rule’.

    NYSE Composite Index – Looking Ahead

    With this year’s zig zag decline out of the way, the NYSE Composite index, like the others, can now begin a multi-month recovery, extending the bull market, impulse uptrend that began from the Feb.’16 lows.

    Shorter-term, the advance from 11820.32 has unfolded into an intra-hourly five wave impulse pattern ending last Friday at 12449.93 as minuette wave [i]. Wave [ii] has since begun a three wave counter-trend correction but this remains incomplete. Await some downside pull across the U.S. mid-term election results before the trend resumes higher.

    What has the SP500 and Nasdaq 100 in common?

    by WaveTrack International| November 1, 2018 | 5 Comments

    Three Wave Zig Zag Decline Completed for SP500 + Nasdaq 100

    The SP500’s decline from September’s high has completed a three wave zig zag corrective pattern into last Monday evening’s low of 2603.00. This development changes this year’s expanding flat into developing triangle pattern. Turning this into a bullish outlook from current levels through to year-end and into H1-2019. The Nasdaq 100 follows the same pattern. Ending into zig zag from October high at 6580.50 and again turning this into a bullish outlook into year-end.

    This year’s declines from January’s highs have been labelled as unfolding into an expanding flat corrective pattern as minute wave 4. However, it is now changing into a triangle. See latest EW-Compass Report.

    SP500 + Nasdaq 100 - Elliott Wave Forecasting by WaveTrack International

    SP500 + Nasdaq 100 – Elliott Wave Forecasting by WaveTrack International

    The original expanding flat patterns were labelled [a]-[b]-[c], subdividing [3]-[3]-[5]. They were requiring a five wave downswing from the late-September/early-October highs. Hence, for the SP500 from 2940.91 (cash) and 2947.00 (futures) and for the Nasdaq 100 from 7700.56 (cash) and 7728.75 (futures). But we’ve detected a visible three wave zig zag pattern unfolding in wave [c]’s decline rather than a developing five wave sequence. The two downswings from 2947.00-2712.25 and from 2824.25-2603.00 measure equally. In case of the SP500 by a fib. 100% equality ratio (see SP 500 – inset left) and for the Nasdaq 100 from 7728.75-6907.75 and 7368.50-6850.50 (see Nasdaq 100 – inset right). This fits the characteristic of the zig zag. It therefore ends wave [c] but within a developing triangle because a triangle is labelled [a]-[b]-[c]-[d]-[e] but importantly, subdivides [3]-[3]-[3]-[3]-[3].

    Conclusion

    These zig zags confirm a good recovery can begin as wave [d] within the triangle. As a result, the SP500’s upside targets are aiming towards 2855.75+/- and Nasdaq 100’s towards 7544.00+/- into year-end, perhaps into January. Looking ahead, the triangle confirms minute wave 4 and upon completion, wave 5’s push to record highs.

    Bi-weekly updates on the SP500, Nasdaq 100, US Dollar Index, Crude Oil, EuroStoxx, Russell 2000, Dow Jones 30, Dax, ASX200 and more! Don’t miss WaveTrack’s regular updates in our bi-weekly EW-Compass Report! Ensure you’re tracking our Forex forecasts – subscribe online for the EW-COMPASS REPORT.

    Visit us @ www.wavetrack.com and subsribe to our latest EW-COMPASS report!

    US$ Dollar Gains After Fed – Shouldn’t Crude Oil Also Decline?

    by WaveTrack International| September 28, 2018 | No Comments

    US$ Dollar Gains After Fed – Shouldn’t Crude Oil Also Decline?

    Following Wednesday’s Federal Reserve interest rate hike of 0.25% to 2.25%, the US$ dollar has pulled higher by 1.23% per cent from 93.95 to 95.11. The US$ dollar looks set to continue higher over the next week or two as the finalising sequence of the expanding flat pattern (see Twitter post 26th September 2018).

    Now what about Crude Oil?

    But the intriguing question now relates to Crude Oil – see fig #1.

    US Dollar Index vs. Crude Oil - Elliott Wave by WaveTrack International

    US Dollar Index vs. Crude Oil – Elliott Wave by WaveTrack International

    As you can see from this analogue, there’s currently a high-negative correlation with the US$ dollar index. Even price-amplitudes are closely aligned. The US$ dollar index pulled higher through Wednesday/Thursday and continuing this advance today (Friday). However, Crude Oil has failed to respond lower in reaction to the stronger US$ dollar. Is there any obvious reason for this breakdown in the correlation?

    Crude Oil - 120 mins.- Elliott Wave by WaveTrack International

    Crude Oil – 120 mins.- Elliott Wave by WaveTrack International

    From an Elliott Wave perspective, the exact same Elliott Wave count is applied to Crude Oil, where an expanding flat is unfolding from Crude Oil’s early-September high of 71.40 – see fig #2. Labelled [a]-[b]-[c]. Wave [a] declined into a zig zag ending at 66.86 on September 7th. And was followed by a double zig zag upswing as wave [b] into the Sep. 25th high of 72.78. If correct, as we believe, then it really should decline now as wave [c] towards levels of 66.20-65.80+/-.

    Conclusion

    Perhaps it’s simply a case of playing ‘catch-up’. However, delays in these types of set-ups are not uncommon. One might view the delay as a complete breakdown of the negative correlation. In this case, Crude Oil’s underlying uptrend is so strong that it’s able to withstand a shorter-term US$ dollar rally. But often, trading opportunities exist where the divergence is simply delayed. Consequently, Crude Oil will perhaps suddenly, trade sharply lower.

    Differentiation between the two possibilities comes down to the qualitative assessment of Crude Oil’s pattern. September’s advance does certainly conform to a double zig zag pattern (66.86-72.78). Therefore, the probability that it can still decline as wave [c] to 66.20-65.80+/- is increased.

    Risk/Reward becomes a factor in whatever trade set-up is taken. Ensure close stops are applied, e.g. Crude Oil above the fib. 38.2% extension level of wave [a]’s trading-range at 73.15 would probably negate this high area as wave [b] of the expanding flat.

    Bi-weekly updates on the US Dollar Index, Crude Oil, SP500, EuroStoxx, Nasdaq 100, Russell 2000, Dow Jones 30, Dax, ASX200 and more! Don’t miss WaveTrack’s regular updates in our bi-weekly EW-Compass Report! Ensure you’re tracking our Forex forecasts – subscribe online for the EW-COMPASS REPORT.

    Visit us @ www.wavetrack.com and subsribe to our latest EW-COMPASS report!

    Apple Inc. – Right on Target!

    by WaveTrack International| September 24, 2018 | 2 Comments

    Apple Inc. Hits Upside Targets of 228.42+/- Then Stages Reversal-Signature!

    The August 3rd update of Apple Inc. forecast upside price acceleration following the publication of strong quarterly earnings results. Elliott Wave analysis had identified this latest push to record highs as a concluding 5th wave within the five wave impulse pattern unfolding higher from February’s low of 150.24. But this was minor wave v. five within the larger impulse uptrend. This wave dates back to the May ’16 low of 89.47, labelled intermediate wave (5) which means a much larger uptrend was approaching completion.

    Using fib-price-ratios, Apple Inc. was forecast higher from 207.39 ending minor wave v. five at 228.42+/-. The actual test of this price level occurred on September 5th at 229.67. It was derived where minor wave v. five unfolds by a common fib. 61.8% correlative ratio of waves i-iii one-three.

    Apple Inc.  - Daily - Elliott Wave Forecast by WaveTrack International

    Apple Inc. – Daily – Elliott Wave Forecast by WaveTrack International

    Since achieving this upside target for wave v. five of (5), Apple Inc. has now staged price-rejection. The subsequent reversal-signature confirms that a counter-trend decline has begun.

    What Next?

    The next question is how far can Apple Inc. decline in this correction? Intermediate wave (5)’s advance from the May ’16 low was also the concluding 5th wave of primary wave 5. It stretches back to the April ’13 low of 55.01. And primary wave 5 is also part of the longer-term impulse uptrend that began from the July ’82 low of 0.19. If correct, then Apple Inc. could begin a major correction lasting a decade or more. Returning prices back to low-double-digit levels! But is this likely at this juncture of the secular-bull uptrend? After all, the Nasdaq 100 is still some way off Elliott Wave upside targets of 11946.00+/- (see bi-annual video series).

    Apple Inc. – Alternate Counts

    Although Apple Inc.’s historical data begins in December 1980, this isn’t enough to verify an absolute terminal price-peak for ending its long-term uptrend. Major indices bottomed in 1974, six years earlier so we can only guess what Apple Inc. would have traded then. It makes a huge difference in Fibonacci-Price-Ratio measurements of the secular-bull uptrend and of course, the Elliott Wave pattern itself.

    The current long-term wave analysis is therefore one of a few potentialities labelling primary wave 1 ending into the April ’91 high of 2.61, primary wave 2 into the Dec.’97 low of 0.45, primary wave 3 ending into the Sep.’12 high of 100.72 and now primary wave 5 completing in Sep.’18 at 229.67.

    But what we can determine with some surety is that a five wave impulse upswing from the May ’16 low of 89.47 did end into the early-September high of 229.67 which at the very least, indicates a corrective retracement towards ‘fourth wave of preceding degree’ which is at the Feb.’18 level of 150.24.

    One alternate count that prolongs Apple Inc.’s secular-bull uptrend relabels the intermediate degree subdivision of primary wave 5’s advance from the April ’13 low of 55.01 so that wave (1) ends into the April ’15 high of 134.54, wave (2) into the May ’16 low of 89.47, wave (3) into the Sep.’18 high of 229.67 with wave (4) now engaged in a corrective downswing towards the fib. 38.2% retracement level of 160.00+/-. Naturally, this decline would necessitate unfolding into a three wave pattern, or a multiple seven/eleven wave sequence to validate its corrective credentials so would be easily spotted and differentiated to a more bearish impulse pattern.

    Conclusion

    Apple Inc. has underperformed over the last weeks. In fact, coming bottom of the Dow Jones 30 index table of component stocks. Apple reached a decline of -2.8% per cent over the last week alone and down -6.25% per cent from the high. This is consistent action following the completion of the 5th wave at 229.67. However, it’s too early to verify Apple Inc.’s long-term consequences. This means for the time being, downside targets are at least towards the 160.00+/- area.

    Are you trading the SP500, EuroStoxx, Nasdaq 100, Russell 2000, Dow Jones 30, Dax, FTSE100 or ASX200? Don’t miss WaveTrack’s regular updates in our bi-weekly EW-Compass Report! Ensure you’re tracking our Forex forecasts – subscribe online for the EW-COMPASS REPORT.

    Visit us @ www.wavetrack.com and subsribe to our latest EW-COMPASS report!

    keep looking »

    About WTI

    WaveTrack International is a financial price forecasting company dedicated to the Elliott Wave principle and work of the R.N. Elliott. Clients include Investment Banks, Pension Funds, Total/Absolute-Return/Hedge Funds, Sovereign Wealth Funds, Corporate and Market-Making/Trading institutions and informed individuals -- & just about anyone who is affected by directional price change.

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