STOCK INDICES, Tuesday 29, 2013

Hi Traders,

First, just let you know that I will host a free trading webinar and presented by ChaseJonesFX, the stockbroker I recently started co-operating with.

To login to this week’s webinar please follow- http://www.elliottwaves.com.au/webinar/free-trading-webinar or visit www.elliottwaves.com.au

PASSWORD = chasejonesfx

Webinar's Discussion Points: setting up your charts to identify Elliott Waves, Pivot point and Candlesticks trade set ups. The webinar will last 1 hour. Please feel free to ask any questions during the webinar.

Secondly, many thanks to Vikram Singh - one of our active traders and member of Sydney Traders - whom kindly allowed me to use his broadband as mine runs pathetically slow.
 
Following: the situation of some stock indices
 
SITUATION
 
DJ30
 
Elliott Waves
As in the monthly chart below the DJ30 has gone up in 4 waves and it's completend the chart with wave 5, the latter being "the 5th of the 5th" since feb 2009.
 
Fibonacci
As you can see the Fibonacci expansion applied to wave 1&2 and the one applied to wave 3&4 concide around a couple of targets: 14,300 and maybe 15,400.
 
Moreover, let's make the amplitude between 4 (dark blue, font 11) and 1 (light blue, font 9) equal to 100%.
 
Then let's project this distance from point 4  (light blue, font 9) upwards. At level 61.8% we have 14,300 once again. At level 100% we have 15,400.
 
This clusters of Fib-Nodes are names Confluences (K) and are usually likely targets.

click the chart to enlarge, "esc" to exit

 

This clusters of Fib-Nodes are names Confluences (K) and are usually likely targets.

Conclusion

The weekly chart below shows only 3 waves up (top right) out of 5. This means that wave 3 will be soon completed soon, followed by the retracement wave 4 and the last impulse wave up to tartget 14,300 (top red line).

now, if there is no further wave extension the market will complete this upward cycle to 14,300 and maybe 15,400 within few weeks. Then it will retrace down for month.

But, if there is one or more wave extensions - maybe due to FED expansion policy - the market will point North for months.

 
 click the chart to enlarge, "esc" to exit