Technical Analysis of Financial Markets

Friday, October 24, 2008

Elliott Wave Projection – Descending Triangle


Wave IV is seemingly consolidating into a bearish Descending Triangle formation. Wave D of the Descending Triangle may be completing at which point, price action may rally towards creation of wave E. Final fifth wave V ought to see a breakdown of the Descending Triangle towards Oct 2002 lows at approx 7200.

2 comments:

Mika said...

Steve, have you looked eur-usd pattern recently, it correlates very strongly with stockmarket because it correlated with commodites. Stocks go nowhere without commodity market lead the way. I think this SPX1000 might have same setup now coming for next week - I know many are expecting volatility rally allready, but for some reason I have very difficult to see it yet to come - even I expect same to be happen for x-mas as relief bear rally, this overall market has been so mad and for long time.

I hope you´re Ok on there & enjoy the weekend !

Regards,

JustCharts

Anonymous said...

steve,

your descending triangle could still be valid with the election day high as point c.

your original triangle was slightly suspect as they are rarely under one month long.