Turning Point of all Stock Indices? Saturday, February 16, 2013

Hi Traders,

Please don't forget that we hold two webinars every Wednesday:

• one at 7pm (Sydney time)
• one at 7pm (Perth time)

Back to trading, there are rumors about the stock markets topping and reversing. To read some confirmation let's see a comparison of the major daily charts: DAX30, DJ30, FT100, S&P500 and SPI200.
 
ps: Don't miss the last chart at the bottom

SITUATION

Although waves 1 to 4 somehow coincide in each daily chart, this correlation looks broken afterwards, with only FT100 and SPI200 showing 5 waves (of a minor grade) to the top.
 
This means that:

• all charts might start a major reversal in the the week 25Feb-1Mar or even the incoming one
• OR
• they are actually starting a very minor reversal down (wave 4) followed by a minor double top (wave 5). Only then, the major reversal would take place.

The DAX below shows a little downtrend. Basically, if it bounces back on the channel line, it might form a double top or even reach level 8000 where a major reversal would start.

click on the chart to enlarge and "esc" to exit

 

 

 

See the double top in the FT100  below - which comes usually a week earlier then the other markets. Note the Stochastic in negative divergence although both the awesome osc. and the wave osc. don't give us any go yet.

 

 

 

click on the chart to enlarge and "esc" to exit 

 

 

 

 

 

DJ30 and S&P500 below show a very distressed reversal candlestick formation called "wheezing pattern" at the top, meaning an imminent reversal.

 

Whether this is  going  to be a major reversal or instead a small a-b-c down followed by a double top this is not  clear.

 

At present there seem to be only 3 waves up out of 5. Note the Stochastic in negative divergence although both the awesome osc. and the wave osc. don't give us the go yet.

 

 

 

click on the chart to enlarge and "esc" to exit 

 

 

 

Yet again 3 waves up only - out of 5 - for the S&P 500 below with the wheezing formation which is by definition a very bad sign. Note the Stochastic in negative divergence although both the awesome osc. and the wave osc. don't give us the go for a major reversal yet.

 

 

 

click on the chart to enlarge and "esc" to exit 

 

 

 

Instead,the SPI200 below shows the completion 5 ripples up plus the reach of the expected target at level 5000. Actually, level 5041 is the perfect "50% retracement up" of the major slump occurred in 2007-09.

 

 

click on the chart to enlarge and "esc" to exit

 

 



 

Finally, note the weekly chart of the SPI200 just below. We have some significant coincidences:

• we reached the same top 3 times
• the last wave looks a "two step pattern" which is a 3-wave pattern (completed or almost near 5041)
• Note the TIMING:  if the 18 weeks pattern will be repeated, the reversal should occur the week 25Feb-1Mar or even the incoming one.

 

 

click on the chart to enlarge and "esc" to exit