Hi Friends,
Policymakers had been so busy in bailing out Greece & Bankrupt Europe that they could not see whats happening in America. Greece is an old story go short sell America it is going to Collapse like Hell.
I can see some interesting Elliot pattern developing on S&P 500 as well as on DJIA which is really very scary for the Equity Investors across the Globe. Apart from this with that Engulfing Bullish Candle on Dollar Index and Engulfing Bearish Candle on Euro/USD everything suggesting that all the bets in Equities in the World are going to get off. With that Hanging Man candle formed last week. Warning sign glowing now. And with that Expanded Flat developing on S&P 500 there will be a Bloodbath in all Global Equity Markets.
The low in Aug 2011 at 1100 was the Larger A of this Expanded Flat, and this high of 1378 seems to be the B of the Flat. And the forthcoming C will take S&P 500 below 1000 in next 3-4 months.
There is a rare possibility that S&P 500 to break above this high. And even if it breaks today's high the up move is limited till 1471. The initial confirmation will come below 1340 i.e. upon breaking below this Ending Diagonal or Terminal Triangle (Wadge Shape Pattern) on S&P 500.
Further this another Chart of S&P 500shows you what happened after the previous two Greek bailouts.
Well Fundamentally nothing changed and there is no positive news in Europe. And with this LTRO Policymakers are doing nothing but postponing the Death. More Leverage to these Bankrupts will further worsen the Credit Crisis. The European Economy will continue to go through Recession. The Bailouts are not going to help come out of this Financial Crisis which started in late 2007. The Crisis will continue till 2015-2016. But Within that World will see sets of 2-3 Bull & Bear Markets. The World has already witnessed the 2008-2009 Bear Market and then this Bull Market of 2009-2011. Now after this Down move on S&P 500 during 2011-2012 it will start inching higher and cross this 2012 high in this year itself and will go much higher and also cross 2007 highs till the year 2014. But this is not enough. After crossing the 2007 Highs most probably in 2014 World is going to witness much larger and sharper Decline in 2015-2016. And DJIA will go below the 2009 lows most probably to 3000-4000 in 2016. The Below DJIA chart will help you to know the path over next 4-5 years.
Well this is the first time I've done such Long Term Analysis based on Elliot count. Which could be completely wrong. But All I can say is Buy in Panic and Sell on Euphoria. The Current move on World Indices depicting Euphoria and 1 must book profits if cannot dare to sell short.
Happy Minting..
Thanks & Regards,
Harsh Dixit.
Policymakers had been so busy in bailing out Greece & Bankrupt Europe that they could not see whats happening in America. Greece is an old story go short sell America it is going to Collapse like Hell.
I can see some interesting Elliot pattern developing on S&P 500 as well as on DJIA which is really very scary for the Equity Investors across the Globe. Apart from this with that Engulfing Bullish Candle on Dollar Index and Engulfing Bearish Candle on Euro/USD everything suggesting that all the bets in Equities in the World are going to get off. With that Hanging Man candle formed last week. Warning sign glowing now. And with that Expanded Flat developing on S&P 500 there will be a Bloodbath in all Global Equity Markets.
The low in Aug 2011 at 1100 was the Larger A of this Expanded Flat, and this high of 1378 seems to be the B of the Flat. And the forthcoming C will take S&P 500 below 1000 in next 3-4 months.
There is a rare possibility that S&P 500 to break above this high. And even if it breaks today's high the up move is limited till 1471. The initial confirmation will come below 1340 i.e. upon breaking below this Ending Diagonal or Terminal Triangle (Wadge Shape Pattern) on S&P 500.
Further this another Chart of S&P 500shows you what happened after the previous two Greek bailouts.
Well Fundamentally nothing changed and there is no positive news in Europe. And with this LTRO Policymakers are doing nothing but postponing the Death. More Leverage to these Bankrupts will further worsen the Credit Crisis. The European Economy will continue to go through Recession. The Bailouts are not going to help come out of this Financial Crisis which started in late 2007. The Crisis will continue till 2015-2016. But Within that World will see sets of 2-3 Bull & Bear Markets. The World has already witnessed the 2008-2009 Bear Market and then this Bull Market of 2009-2011. Now after this Down move on S&P 500 during 2011-2012 it will start inching higher and cross this 2012 high in this year itself and will go much higher and also cross 2007 highs till the year 2014. But this is not enough. After crossing the 2007 Highs most probably in 2014 World is going to witness much larger and sharper Decline in 2015-2016. And DJIA will go below the 2009 lows most probably to 3000-4000 in 2016. The Below DJIA chart will help you to know the path over next 4-5 years.
Well this is the first time I've done such Long Term Analysis based on Elliot count. Which could be completely wrong. But All I can say is Buy in Panic and Sell on Euphoria. The Current move on World Indices depicting Euphoria and 1 must book profits if cannot dare to sell short.
Happy Minting..
Thanks & Regards,
Harsh Dixit.
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