The S&P 500 crashed by as much as 35% in just one month. And while the coronavirus outbreak was totally unpredictable, the crash it caused made perfect sense. Elliott Wave is our favorite method of analysis, but as the market kept rising we decided to back it up with fundamental data. The result was a…
S&P 500, Against All Logic, Re-Enters Bull Market
The coronavirus pandemic forced the global economy to grind to a halt. Major U.S. stock market indices made their fastest plunge into bear market in history. In less than two months, DJIA and the S&P 500 lost 38.4% and 35.4%, respectively. “The virus is just starting to spread in the United States, the market is…
Dow Jones Transports Ready for a Rebound?
The coronavirus pandemic is wreaking havoc on the global economy. Governments are closing malls, restaurants and literally all kinds of social gathering places, and even putting entire cities on lockdown. In the meantime, stock market indices are in free fall. The S&P 500 is down 28.7% YTD and the Dow Jones Industrials lost 35.2% since…
Three Years Ahead of the COVID-19 Airlines Disaster
As the coronavirus pandemic rages on, governments are taking measures to restrict unnecessary travel and mass gatherings. The airlines sector is probably the one being hit the hardest by the restrictions. The high fixed costs and huge debt loads of the airlines make them extremely vulnerable to economic downturns. With international and domestic travel on…
Nikkei Down 30% on COVID-19 Fears. Time to Buy?
The last time we looked at the Japanese Nikkei 225 was on November 19th, 2019. The index was comfortably trading above 23 400 and the uptrend seemed very healthy, on the surface at least. And indeed, in December, the price reached 24 116. However, the fact that prices have been rising in the past didn’t…
“DAX Falls on Coronavirus Fears.” It’s Not That Simple
The coronavirus outbreak is a convenient explanation for everything market-related these days. According to the media, investors across the globe panicked last week that the virus, which has taken over 3000 lives already, is going to become a pandemic. Major stock market indices in the U.S. lost roughly 14% in the past five trading days.…
S&P 500 – Elliott Wave Ahead of the Coronavirus Panic
It’s been a bloody week for stock investors. Markets are crashing across the globe on fears that the coronavirus outbreak, which originated in Wuhan, China, is going to become a worldwide pandemic. The DJIA and the S&P 500 lost 10.8% and 10.7% in the past four days, respectively. As of this writing, the futures market…
Is Coronavirus the Black Swan to Sink Dow Jones?
Stocks around the globe sold off Monday on fears coronavirus is getting out of control. The virus appears to be spreading from Asia to Europe as Italy announced it is putting 12 towns under quarantine. Dow Jones fell 3.56% in response to the news, while the S&P 500 lost 3.35%. Now, everyone is wondering if…
S&P 500: Last Four Moves Made Elliott Wave Sense
Over a month ago, on November 8th, we published an article demonstrating the Elliott Wave principle‘s ability to predict relatively large moves in the S&P 500. As the move in question progressed we decided to take a closer look into its structure to see what is left of it. The chart below was part of…
Nikkei 225 Can Lose 30% in Next Corrective Wave
The Japanese Nikkei 225 reached a multi-year high of 24 448 in October 2018. The last time the index traded this high was 27 years ago, in 1991, in the aftermath of the Japanese asset bubble. However, the bulls couldn’t maintain their momentum last year, which opened the door for a decline to 18 949…
S&P 500: Triangle Pattern Leads to New Record High
The S&P 500 reached new all-time highs on the back of better-than-feared earnings season and improved US-China trade prospects. The index closed at 3085 Thursday, bringing its 2019 tally to the impressive 23.1%. But was there a way to predict this move instead of just explaining it after the fact? To paraphrase Warren Buffett, the…
Insurance ETF Poised for an Elliott Wave Correction
The SPDR Insurance ETF reached a new all-time high in September, helped by a solid job market, increasing wages and rising consumer confidence. The price is up 630% since the Financial Crisis low at $4.77 in March 2009. The question is, can investors trust the uptrend to continue? Regardless of what pundits say, we don’t…
Dow Jones Sends a Warning Investors Can’t Ignore
The price movements of financial instruments form repetitive patterns, called Elliott waves. Experienced analysts try to recognize those patterns in order to prepare for the next market move. Sometimes, a pattern can indicate not only one, but the next two consecutive moves. The triangle pattern, for instance, is known to precede the last wave of…
DAX 30 Adds to Global Recession Fears
The German DAX 30 index has been declining since early July when it reached 12 656. Last week’s news that the German economy shrank by 0.1% in the second quarter only added to global recession fears. The benchmark index of Europe’s largest economy fell to 11 266 on August 15th. Are investors’ concerns warranted? Or…
Dare to Guess the Best Stock Market Index of 2019?
The first half of 2019 saw stock market indices around the globe rebound sharply. In the U.S., NASDAQ, DJIA and the S&P 500 are up 22.7%, 14.8% and 18.9% since the start of the year, respectively. In Europe, the German DAX and France’s CAC 40 both climbed 17.8%, UK’s FTSE 100 surged by 12% and…
