Here or, perhaps, a little higher we are hitting major resistance on the NASDAQ.
I’ve put a ‘rudimentary’ count together on the NASDAQ and from a price perspective, it does not violate any rules of Elliott BUT notice how LONG (time) wave 1 and wave 3 were …?
Might be a hard argument to win that this is THE 5th wave …maybe 1 of 5 but I do think we have some resistance here or a little higher.
Interestingly enough, the all time high, so far, on the NASDAQ was exactly equal to 1.618 * wave 1.
AUDJPY correlates nicely with the NASDAQ
I like to track the AUDJPY and had not taken a look at it for a while. Why? It’s been in a VERY well defined parallel trend channel going back decades. I’ve never traded it, but use it w/ equities. Hugh?
It’s actually known as one of those cross pairs that are associated w/ “risk on” and “risk off.” In this case, AUDJPY is seen as “risk on” and it’s interesting to see how this is correlating pretty nicely w/ the equities.
The candles is the AUDJPY spot currency pair.
The red line is the NASDAQ composite
The black circles are just correlation nodes that corresponding to inflections in the market and the light blue rectangles are just showing the time component. Now, please note, one time it didn’t even register and this correlation pretty much failed. But, every other market move, the AUDJPY was inflecting.
So, top of the range and an ABCD target on the AUDJPY. Usually spells a relief/correction in this ongoing insanity higher.
love that saying from the Big Lebowski … what a great movie.
so, here we go folks .. I’ve just ran thru the DJIA, NASDAQ and S&P 500 and ALL have sell patterns.
what does that mean? well, nothing … right? it’s all probability …
but, that’s what we play, probability …so, we have Gartley SELL patterns across the board – they will 1/ work or 2/ not work.
also, our favorite ratio is banging against the bottom of the range that it’s been swimming in for months .. but, take a look , at this lower level you will see an AB=CD, a 3 drives to a bottom and a butterfly BUY on the ratio. so, when the ratio goes UP then the market usually goes down …
we break down below our XLP/NYA level this puppy could rocket ship higher and, then again, the sell patterns work, the XLP/NYA level holds and we start selling off again …
all probability …
