Latest Market Update

SPX in Topping and XAU in Head-and-Shoulders

Sunday, April 20, 2014

The broad stock market is still in a sideways correction. The S&P 500 index is forming a 2-month broadening triangle (megaphone) pattern with increasingly widening price swings that potentially make a topping formation. Higher highs and lower lows let both bulls and bears face a challenge. Gold/silver mining stocks have developed a short-term bearish head-and-shoulders pattern, and a possible breakdown could send them back to the previous lows.

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Broad Stock Market Correction Continues

Saturday, April 12, 2014

As the complex correction of 2014 continues to extend, the S&P 500 index tumbles into a new A-B-C corrective pattern right after the short-lived X wave. The biotech and internet sectors lead the stock market lower. The Broad Market Instability index (BIX) surging above the panic threshold and the major U.S. stock market indices dropping below the 89-day exponential moving average are both very bearish indications.

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Elliott Wave X Suggests Extending Sideways Market

Sunday, April 6, 2014

The upward wave, which pushed the S&P 500 index up to a new record high early last week, is characterized as Elliott Wave X, a wave linking two corrective patterns. Right after wave X, another new A-B-C corrective pattern is expected. It would extend the current intermediate-term corrective wave into complex sideways corrections. Currently we have a mixture of a bullish sign from the Leading Wave Index (LWX) and a bearish sign from the negative momentum.

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Complex Corrections Pose a Challenge to Bulls & Bears

Sunday, March 30, 2014

The intermediate-term correction of the broad stock market continues in a sideways market. The minor C wave in the S&P 500 index was trapped in a 4-week symmetrical triangle pattern, suggesting that the current intermediate-term correction could face complexity in a potential extending sideways market if we see an upward minor X wave in the next couple of weeks. The broad stock market should be nearing the end of the short-term neutral time-window.

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Sideways Markets with Sector Leadership Changes

Sunday, March 23, 2014

The broad stock market went nowhere except into a choppy mode during the last two or three weeks, while the US dollar and US treasury were bounded in their recent trading ranges. We have a mixture of a bullish sign from the low readings of the Broad Market Instability Index (BIX) and a bearish sign from the negative momentum. The broad stock market is projected to be in a short-term neutral time-window until it escapes from a sideways market. There is a shadow casting on the stock market from the Biotech, Internet, and Home Construction sectors having recently lost their market leaderships which they maintained for several months. We should be cautious while this market lacks a consistent leadership from leading sectors.

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Expanded Flat Correction in Progress

Sunday, March 16, 2014

As the Russian and Brazilian stock markets tumble to their 52-week lows, the broad stock market continues its intermediate-term Expanded Flat correction. Gold resumed its advance after a three-week pause and approaches our upside price target. Silver is possibly near a major bullish breakout. The precious metals sector is outperforming other sectors. A short-term bearish time-window for the broad stock market is projected to last until …

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Broad Stock Market in an Expanded Flat

Sunday, March 9, 2014

The chart patterns for the S&P 500 index, German DAX index, gold/silver, crude oil, U.S. treasury, and U.S. dollar are either in consolidations or expanded flat corrections. This week’s powerful bullish chart comes from the India Bombay Stock Exchange Index with a major bullish breakout from its 6-year ascending triangle pattern at a record high. It makes the Indian stock market significantly outstanding from other emerging markets in a downward spiral like China, Brazil, and Russia. DBA Agriculture ETF is fast approaching the upside price target after a major bullish breakout from a 3-year falling wedge pattern.

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Bulls are Headed towards a Red Light

Sunday, March 2, 2014

Bulls are running out of time to push the market higher as the short-term time-window is about to turn bearish for the broad stock market. A sell-off would be triggered when the S&P 500 index crosses below 1850. A short-term bearish time-window is projected to last until …

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Time to be Cautious on the Market

Sunday, February 23, 2014

The broad stock market has had a throwback to the previous high with Wave B, and it approaches another key market juncture. In the short-term, bulls have limited time to push the market higher as the short-term bullish time-window nears its end. In this week’s report, two interesting international market charts have been added, one for the German DAX Index and another for the Shanghai Composite Index, to expand our coverage to major global markets. A chart of the DBA Agriculture ETF is also included to track a potential major breakout.

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