Indices Trading | Elliott Wave Structures | Q2 2019

Indices Trading | Elliott Wave Structures | Q2 2019
Markets: EU & US Indices

• VIX (Volatility Index)
• CAC40
• DAX30
• FTSE100
• DOW30
• SPX500
• NAS100

Indices worldwide bounce-back with the end of 2018, when the consolidation cycle has ended.

The bullish structure is impulsive but it’s about to end soon, in the sense that it could most likely represent the 1st leg of the returning Bull Market.

When it comes to volatility VIX has been sliding on the down-side, showing a dangerous wedge formation, which could result in a proper spike in volatility occurring very soon.

With the recent sharp declines noticed in global indices, there is no doubt that stock exchanges worldwide are running out of steam, with a realistic possibility of a bigger contraction “lurking”.

Once again, bears are threatening the markets!

If you are following my analysis for a while, you might know that I’ve been able to time the sell-offs witnessed back in Jan-Oct-Dec last year.

So, let’s move on and ask ourselves the most important question?

“Is this going to be a healthy retracement or are the stock exchanges finalizing the bull market?”

Preferably, and by listening to my charts, I would say that we are in a wave 2 of a larger degree bullish swing, the last one before the Market Crash.
Yes, the Crash is coming!

I’ve been patiently waiting for this bullish impulses to show sights of exhaustion, and now that I see clear signs, it’s time to keep on watching for favorable patterns.

In short, Indices world-wide are approaching crucial levels, which if breached in an impulsive manner, it could result in a violent shock-wave.

Indices need to be able to bounce-back asap, should the bull market be destined to resume.
If unable, then it’s that big ugly bear knocking on the door again.

In order to help my fellow traders, I’ve prepared some Daily Charts for global indexes, which you could use for your trading enhancements.

Should you want to correlate these views on Indices with other markets, then you may find the articles below quite useful.

• “Forex Trading | Elliott Wave Structures I Q2 2019”

• “Metals Trading | Elliott Wave Structures I Q2 2019”

In the lines to come I will be sharing the way I’m labeling Indices, pointing towards possible scenarios for the second quarter of 2019.

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• Pattern:
  Leading Diagonal in Intermediate (1) (blue)
  “Bullish” Divergence soon to launch a spike

• Next expected swing:
  Violent rise and a spike in volatility in Intermediate (2) (blue)

• Structure change:
  An impulsive continuation for the down-side could lead towards Indices rallying in a 3 of 3’s.

• Bearish Swings – Patterns:
  Triple Three structure in Cycle Wave IV (green)
  W (purple) – Zig-Zag
  X (purple) – Three (false break-out)
  Y (purple) – Simple Flat
  X (purple) – Contracting Triangle
  Z (purple) – Zig-Zag

• Bullish Swings – Patterns:
  Impulse in Intermediate (1) (blue)
  Extension in Minor 3 (green)

• Next expected swing:
  Bearish sequence in Intermediate (2) (blue)

• Structure change:
  Bullish continuation in an impulsive manner could lead towards more up-side for an Ending Diagonal.

CAC40 – Daily Interactive Chart

DAX30 – Elliott Wave Outlook

FTSE100 – Daily Chart (picture)

SPX500 – Elliott Wave Outlook

SPX500 – Daily Chart (picture)

• Bearish Swings – Patterns:
  Flat Formation in Cycle Wave (IV) (green)
  Primary A (red) – Simple ABC Swing
  Primary B (red) – Complex Triple Three
  Primary C (red) – Bearish Extension

• Bullish Swings – Patterns:
  Leading Diagonal in Primary 1 (pink)
  Intermediate (1) (blue) – Impulse
  Intermediate (2) (blue) – Complex Flat
  Intermediate (3) (blue) – Bullish Extension
  Intermediate (4) (blue) – Sharp Correction
  Intermediate (5) (blue) – Ending Diagonal

• Next expected swing:
  Bearish sequence in Primary (2) (pink)

• Structure change:
  Breach of the lower trend-line could lead towards Primary (2) (pink) already unfolding.

SPX500 – Daily Interactive Chart

NAS100 – Elliott Wave Outlook

NAS100 – Daily Chart (picture)

• Bearish Swings – Patterns:
  Complex Flat in Cycle Wave (IV) (green)
  Primary W (purple) – Zig-Zag
  Primary X (purple) – Complex Triple Three
  Primary Y (purple) – Simple ABC Swing

• Bullish Swings – Patterns:
  Bullish Impulse in Primary 1 (pink)
  Intermediate (1) (green) – Impulse
  Intermediate (2) (green) – Complex Correction
  Intermediate (3) (green) – Bullish Extension
  Intermediate (4) (green) – Sharp Correction
  Intermediate (5) (green) – Extended Ending Diagonal

• Next expected swing:
  Bearish sequence in Primary (2) (pink)

• Structure change:
  Breach of the lower trend-line could lead towards Primary (2) (pink) already unfolding.

NAS100 – Daily Interactive Chart

Many pips ahead!