The technique of comparing charts is a useful if things get a bit confused. What is a mistery in one chart maybe clear in another one, especially when it comes to:
- labelling waves
- and checking the correlation amongst indices
Each index has almost completed all waves up and the last wave has already made 3 ripples out of 5, as the S&P500 clearly shows.
Consequently, we assume that the other indices with a strong correlation to S&P500 sit in the same situation.
Furthermore, the volatility dropped drammatically in each index after wave 4 and candle's real bodies shrank significantly and so the trading volume.
These are indications to me that the big investors have left already or are leaving now the stock markets.
Furthermore, even if the S&P500 as reached its target at 1,500 it might retrace a bit and re-test it.
The FT100 as well is already on target at 6,300 and might retrace a bit and re-test this top.
Other indices might still have some little ground to cover. ie: DAX to 8,000, DJ to 14,000 and SPI200 to 5,000.
After this top a contraction of a major grade will take place.
TRADING
Better wait for the major downturn and a good reversal candlestick in the 15min and 1h charts before going short.
DAX30 daily
Starting a retracement Zig-Zag (ripple 4), then maybe rally to the resistance at 8,000.
click the chart below to enlarge and "esc" to exit.
DJ30 daily
Definitevely more volatile then the Dax. That gap after wave 2 looks like an exaustion gap. Starting a retracement Zig-Zag (ripple 4), then maybe rally to the resistance at 14,000.
click the chart below to enlarge and "esc" to exit.
S&P500
The significant difference with the DJ above is that the S&P500 is already on target at 1,500. It might retrace with a zig-zag and test the same resistance again.
click the chart below to enlarge and "esc" to exit.
This was really hard to label. Also, there's no gap after wave 4. The Footsie seems to be already on target: 6,300. It might retrace and re-test this top.
click the chart below to enlarge and "esc" to exit.
SPI200
It might retrace to 4,660 (blue line) and rally to 5,000 (It's about the time!)
click the chart below to enlarge and "esc" to exit
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