Elliott wave analysis of DJI, EUR/USD and GBP/JPY

Dow Jones Industrial Index

Do we have an important top in place? I think we are close, but not quite there yet. That said we are clearly in wave v of C and we could run in to THE top any time, so it would be prudent, at least in my eyes, to either place a stop on longs or reduce the exposure up here in the very lofty area.

If would want to be riding this uptrend for as long as possible, then place a stop. I would recommend a stop just below 15,075.00. If this rally has more upside potential we should not see a break below 15.075 and more importantly we should not see a break below 14,551.00 if this happens. we have wave D of the expanding triangle in place and wave E is developing.

EUR/USD

This wave ii of 3 has really been a pain. The maximum this wave ii could have corrected would have been 100% of wave 2, which would be to 1.3416, but not a single pip above here. If this happens the bearish Count is wrong and we should look for much more upside action. However, as long as important resistance at 1.3416 protects the upside, my bearish Count stands and I will be looking for a break below 1.3265 and more importantly a break below 1.3187 as confirmation, that wave ii of 3 did end at 1.3400 and wave iii of 3 lower is developing.

GBP/JPY

Let's start with determining that we are in wave 4. This wave 4 should be a flat correction or a triangle. It's to early to say yet, which it will be, so I would go with the most likely possibility and that's a flat correction. The flat correction would call for a move higher towards 156.87 (we don't have get all the way up there, but close to should be enough to fulfill the pattern) and then one last decline, in wave c, towards strong support near 147.00 before we will finally see wave 5 higher.

Elliott wave analysis of DJI, Facebook and Apple - Major S/H/S top in Copper?

 Copper

Massive Shoulder/Head/Shoulder top might have been activated, with a target near 2.0. Short term I would like to see a break below 2.99 and even better a break below 2.72 as that would confirm the decline to the S/H/S target at 2.0.

If we does see a decline to 2.0 in copper, that will mean that the global economy is slowing down and it will put pressure on stocks and likely lift bonds (lower interest rates) again.

Dow Jones Industrial Index

Time for a correction in wave iv before the last and final rally higher? We are getting close to an important top both short term and long term. Before we begin to call gloom and doom over the stock markets I think we need one more lift higher, but it will be very prudent to move the protective stop in close at this point I would call a top, if we does see a break below 13.784

Facebook

 

We have seen a very deep wave ii of 5, but we have likely seen the bottom or is very close to see the bottom in wave ii just slightly below 25.16, but no break below 24.73 is allowed. That should present a very low risk trade buying with a stop at 24.70. However, at this point we would love to see a break above 27.80 and more importantly a break above 28.09 as that would confirm the next powerful rally higher towards at least 31.45. As a target for wave 5 I'm looking for a move to 34.10.

 

Apple

Hit my target at 391 yesterday and we could well have seen the bottom of the correction from 703.86.
I would expect a rally to at least 594.25 to develop soon, if it hasn't already begun. That should be a nice rally of at least 51% from here. That said we now need some prof, that a bottom might be in place and the first indication will be a rally above 405 and more importantly a break above 427 that would call for the rally towards 594.25.

Elliott wave analysis of DJI, Facebook and Apple

 Dow Jones Industrial Index:

Is hoovering just below the important 14,093 resistance level. If this resistance is broken the possibly ending diagonal is history and we should expect more upside to come. However, if resistance at 14,093 protects the upside for a break below 13,329 we should expect a much bigger decline with 10,404 as the first major target. That said, we have to remember, that the uptrend still is in full force and only upon a break below 13,329 do we get the signal, that a top is in place for a much bigger decline.

 Facebook:

Is in its wave 4 correction, which is some kind of flat correction. The first target for this correction is at 27.17, with the possibility for continuing towards important support at 26.51, before the fifth and final rise towards at least 32.83 and possibly even 36.30.
In the bigger picture the rally from 17.55 only marks wave 1 in a much bigger rally. Remember my long term count - You can see it here: http://theelliottwavesufer.blogspot.dk/2012/08/facebook-monthely-close-basis-facebook.html
This count calls for a break above the IPO top at 42.72 for a move much higher later on.

Apple:

Is also in a wave 4 correction, but of a much larger degree. This wave 4 will ideally take us down to 391.00 from where the next rally higher will begin. That said, we have to remember, that fourth waves tend to be very complex in their structure and that would likely mean, that it will not be as straight forward as I just said, but we only have the facts and rules of the Elliott Wave Principle to work with and that will for now call for an ideal bottom at 391.00 and then up in wave 5.