EU Indices Going SHORT | Impulse Complete | April 2019
EU Indices crashed during the second part of 2018 and Indices world-wide found their bottoms with December.
2019 started with a bang!
During the first quarter It was unclear if stock markets worldwide indeed were to recover like that. I have to admit, I did not trust the "thrust" that much.
CAC40 and GER 30 are showing clearer signs of a five-wave bullish sequence completing, thus paving the way for bearish swings. These bearish swings should occur anyway, regardless if it's a corrective Intermediate (2) degree or another bearish impulse for the knock-out. Should the next move be on the down-side, then it would be closely watched, because its sequence will give clear signs on the real direction of the Market.
Elliott Wave Analysis - EU Indices
- Scenario 1 - Bull Market Returning
In this scenario, the current five-wave sequence would reflect the 1st leg of a larger degree bullish impulse, which would last a while and would allow the "complacency" sentiment to return and prevail over the next cycle. Intermediate (2) would wipe out 50-61.8% of the entire gains these indices have shown until now, after which the Market should go bullish once more and in a "rampage".
- Scenario 2 - Bear Correction Not Over
On a larger degree, GER30 has a possibility of crashing for good but there are no realistic signs of that just yet. If the next bearish swing would show and impulsive sequence, then this scenario could be followed up.
- Summary
EU Indices could be turning bearish, as the current wave counts are indicating bearish sequences ahead.
CAC40 - 4H Chart
Levels in Focus: 5450.00 / 5500.00 / 5550.00
DAX30 - 4H Chart
Levels in Focus: 11900.00 / 12000.00 / 12300.00
Many pips ahead!
Richard
P.S. Here's the bearish wave count!
DAX30 - Daily Chart
You're welcome! You can thank me later.
