‘’In three hours, son’’
And so, the conversation goes for maybe another few hours. Most of us have been part of such an exchange. If it is an unknown road/destination, then maybe it is hard to be precise anyway. For your child it can seem like an eternity regardless.
The markets can be very much like that.
The road the markets are taking now seem endless. And windy. We become the child. When will the long drive end? For now, the destination seems a long way away.
But let’s look at the charts – for the All Ords
The daily says maybe we are around the wave five high:
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All Ordinaries (XAO:ASX): Daily Line Chart
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Click to Enlarge
And the weekly says we could see a road bump ahead – how big and when/where we not know:
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All Ordinaries (XAO:ASX): Weekly Line Chart
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Click to Enlarge
The monthly confirms a wave five in the making but stays on the sidelines as to when/where:
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All Ordinaries (XAO:ASX) Monthly Line Chart
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Elliott has been consistent in its projection over the last three years – saying "it’s coming it coming":
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All Ordinaries (XAO:ASX) Monthly Line Chart
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Click to Enlarge
And saying around 7000 plus/minus. So, the above chart is as at mid-2016 – about three years ago. And the story is unchanged.
Lets look at the DOW.
For the last 18 months USA markets have been indecisive – even though it may feel it has been going up:
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Dow Jones Futures (EYM-SpotV) Weekly Line Chart
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The above is weekly and the monthly below signals maybe an orderly pullback ahead:
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Dow Jones Futures (EYM-Spotv) Monthly Like Chart
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All the above charts sort of support each other. I have no reason to disagree with them.
Enjoy the ride
Tom Scollon
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