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Monday, November 21, 2016

Elliott Wave Update 21 November 2016

Bonds, The Euro and Dollar, Gold and Silver are all reaching extreme sentiment readings and are due for a turn in price in each. That means bond prices up, euro up, dollar down, gold and silver up in price. Stocks are not however yet at an extreme in sentiment. So we could get a turn in the other asset classes yet stocks drift higher through the holiday season.

The chart below suggests the time relationship has more room to run:
The next weekly chart shows a price relationship between waves. Again, there is more room to run. But remember in wave (5), wave 1 is the longest wave, so therefore wave 5 cannot be longer than 3.  If 5 goes higher than 3, then the count is not correct for (5).

My Fib markers show the approximate maximum amount of wave 5 price and still be within EW rules.
The squiggle count, wave[iii] is longer than [i], therefore [v] of 5 can run as long as it requires but not to violate the higher degree wave count as explained above.

Squiggle count is that wave [v] of 5 is extending which makes sense because wave [iii] was not much longer than [i]. Therefore that suggest wave [v] will be the longest wave within wave 5 of (5).
Gold nearing solid support.
Dollar.  Target shown.
Bind chart looks eerily similar to the dollar chart.

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