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Markets
generally look tame. Benign. Sort of “Goldilocks” phase. Not too hot.
Not too cold.
You can see
from the XAO weekly chart below that the markets are in a trading range mode:
Image1
The
following is a daily version:
Image2
You can see
that the market has not moved much in the last 12 months. Those who bought may or may not be happy –
depending on what they bought. Some may
also have had some anxious times as there have been times when it looked like
markets could tank. But they held as
there is still support for equities. In
fact support for investments in general.
Property included – putting aside even the China factor.
Turning
back to the XAO we look at Elliott:
Image3
This suggests
a possible fall to 4800/4700 – but this is not a big deal. It is small and may in fact be a healthy
consolidation and attract new buying interest as there is not a lot of buyer
excitement at the moment.
But I am
not necessary overwhelmed by the projection in that it seems hardly plausible
that it will fall that much in the next two weeks.
The Finance
and Materials sector also project easing in the short term – on daily charts:
Image4
Image5
The monthly
outlook suggests the dreamy times will one day return:
Image6
Of course they will. It is only a matter of time. But what happens in between also counts.
Enjoy the ride
Tom Scollon
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