Wednesday 10 April 2013

Major Indices, Wednesday April 10, 2013

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This is a comparison between 6 Stock Indices by using their Daily Charts.


There's usually some correlation between indices but this time this relationship seem to be broken.

Although each chart shows that we're completing MAJOR wave 5 (upward) it's interesting to notice that:
  • The European Indices (CAC40, DAX30 and FT100) seem to have completed 4 MINOR waves up (our of 5) and they're starting the last one up.
  • The US Index DJ30 seems have completed only 3 minor waves up it might start minor wave 4 (down).
  • The US Index S&P500 seem have completed 4 minor waves up and it's almost done with minor wave 5 up as well
  • The Australian SPI200 seems to have completed all minor and major 5 waves up already. It has also completed retracement wave A (downward) and it's staging the new retracement wave B upward.

 If we take this thesis for good:
  • In Europe the indices might try to make a double top or a new top
  • The S&P500 is almost at the top
  • The SPI 200 is doing a sort of double top or lower
  • DJ30 might actually touch/broke the upper line of the channel and then retreat considerably


The dividend season is approaching in Australia and I wouldn't enter the market now. After completing wave B (upward) the Index SPI200 might stage a considerable dip. that could actually be a good short.

The S&P500  might be close to the very top.

DJ30 seems to have stage an overextended minor wave 3 and could stage a retracement (minor wave 4).

As the trading risk is getting too high  it might not be worth it till we see more clarity.

This time I'll give it a miss till I see some good signs of reversal.

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