The S&P has followed my previous forecast almost exactly. It popped a little higher for wave iv, and is now collapsing in wave v. I expect a move toward the 1275 area before a meaningful rally occurs. But that's not to say it won't continue lower. The larger trend is down, so surprises will be to the downside. I will not get long at 1275, but it will just be an area to watch to protect my short position.
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The EUR/USD has also followed my forecast for a move to the 1.2600 level. The breakaway action and fierce selling shown on the above weekly chart is very bearish for the euro. This decline could really pick up steam and shoot toward 1.1876 support very fast. And that's a long ways away with a lot of pips for the bears to gobble up. I remain short.
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Keeping an eye on the shorter term daily chart, you can see a clear descending trendline has been respected by the euro a handful of times. I expect that trendline to remain intact during the euro's decline. With 1.2600 breaking down, there is not much holding up the EUR/USD before it gets to 1.1876. Watch the trendline, and watch the swing highs. As long as the daily swing highs and the above descending trendline remain intact, I'm firmly bearish the euro.
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PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.