NYSE Composite Index + Wilshire 5000
|December’s Five Wave Uptrend Tests Upside Targets – Preparing for Counter-Trend Downswing!!
The following is an extract from our Institutional Stock Index Report published Thursday January 17th 2019
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December’s rally in the NYSE Composite and Wilshire 5000 indices are both unfolding into a five wave ‘expanding-impulse’ patterns – this means the December low ended 2018’s correction ahead of the S&P 500 and Nikkei – shorter-term, this impulse pattern remains incomplete with upside targets around +11% per cent higher – this is directly comparable to the Nikkei’s +7% upswing basis the performance ratio of 1:1.7 - only when completed do we expect to see the S&P 500 and Nikkei begin one additional and final decline for the diagonal pattern – the NYSE Composite and Wilshire 5000 indices synchronise as they begin a 2nd wave correction
Wednesday’s mid-week Elliott Wave Navigator Supplemental report commented that two peripheral U.S. indices, the NYSE Composite and Wilshire 5000 indices were exhibiting characteristic qualities of ‘price-expansion’ since pushing higher from the secondary lows of early-January. This is typically 3rd wave activity within an uptrend – see fig #1.
These advances began with a step-like movement of three price-swings which can easily be identifiably mistaken as a three wave correction within an existing downtrend. But these are a bullish 1-2-1 sequence ahead of a 3rd-of-3rd price advance which has now unfolded to current levels. To complete the entire five wave pattern, it must continue as a 4-5-4-5 sequence – we’ve extending the 1-2-1 by a fib. 161.8% ratio which projects towards 12640.00+/- for the NYSE Comp. index and 29000.00+/- for the Wilshire 5000 Comp. index.
Conclusion
There’s been much talk since early-January of a new secular-bear downtrend beginning from October’s highs – we have consistently shown various economic data with Elliott Wave overlays how this is an erroneous call – see WaveTrack's annual Stock Indices 2019 Outlook.
If the NYSE Composite and Wilshire 5000 indices unfold over the next couple of weeks as we show here, then, the secular-bull uptrend will be confirmed.
Result! Wednesday 20th February Update
December’s Five Wave Uptrend Tests Upside Targets – Preparing for Counter-Trend Downswing!! See fig #2.
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