There was an error in this gadget

Mood!

Wednesday, May 2, 2012

FTSE vs DAX connundrum

FTSE and DAX look similar but with important differences in terms of Elliott Wave labeling.

FTSE daily

Recent down move LOOKS like a wave 4, BUT according to EW rules wave 4's CANNOT violate Wave 1's price.  So an alternative may be that the move up concluded at 5990 mid March , and now we are either in a Wave 1  down, wave 2 in progress (bull move complete), Wave A down and wave B in progress; which means a wave 3 down (strong) or a Wave C down (also strong).



The DAX is similar BUT the recent downward move has not violated Wave 1 so current move up could be start of Wave 5 up; Is the move up convincing enough? 


So there are 3 scenarios.


1. Bull move from December complete, and now in down trend.
2. Bull move from December complete and now in correction ABC with C down wave to come
3. Correction from highs complete and NOW in a move to NEW HIGHS











1 comment:

Total Pageviews