S&p 500: As can be seen from the monthly chart of S&P 500, the momentum for the Index has been dropping precipitously with each new high. (The loss of momentum is pretty much the same on Nasdaq & Dow as well). Under the Elliott Wave Model, I see the move from Dec 2018 as start […]
The US markets are at record highs and the financial press is abuzz with calls of “secular bull run” and huge targets for the Dow and S&P. Not entirely unwarranted, I would say. But what are the internals of the markets telling us now? Let us take a look at the financials sector, which outperformed […]
Apple dropped below 623.55 on Friday and that marked a 5 wave decline on a small degree. We know that when a market declines in 5 waves it normally happens to be a part of a bigger move. With that in mind, let us look at the bigger picture – the real big picture. As shown in […]
Some of you have requested my short term view on Nifty and here goes. The upward correction that started from 4720 saw some serious selling pressure on Friday. It is possible that this correction may have ended as per the red scenario and a new low may be coming. Alternately, the upward correction may have […]
The BAC management takes a voluntary call from Mr Buffett and agrees to pay 6% on 5 billion for 10years or 300 million a year because they have LOADS and LOADS of capital to spare. YES, I BELIEVE IT, that must be the reason.
Yesterday’s session for the US markets was an important one. If the fall from the May highs was corrective yesterday’s low on the S&P 500 should have stayed above 1298. The fact that it did drop to 1296 is an indication the rally from the June lows was possibly an artificial rally manufactured by the […]
The decline over the past few weeks has started to signal a top in some of the equity markets around the world. The Canadian TSX is one of those. The chart above shows a confirmed double top for the Canadian TSX composite index. By conventional measuring techniques and by Elliot wave principle this index should decline to […]
The Dollar index has been on a steady decline since mid-February and is currently one of the least loved asset. While price has drifted lower, the momentum readings have not matched the price lows. If we went back to the 7th Feb blog post on the Dollar Index (from where there was a small bounce), […]
The trendline highlighted on the weekly charts has been a solid support for the Dollar Index despite consistent efforts by the Federal reserve to debase the currency. An ascent past 78.8-79 would increase the odds of this rally having more legs and clearing the 200 MA( currently placed at 81.61). The much awaited correction for […]
The daily charts of Dollar Index shown above, the drop from October lows to November lows is not matched by a momentum drop. This kind of positive divergence is usually a precursor to a trend change. The UUP charts shown above, a morning star candlestick pattern is visible. When this pattern occurs it is usually […]