Sid's Charts

Elliott Wave Analysis US Dollar Index S&P Gold Silver Oil by Sid from ElliottWavePredictions.com

sidscharts@gmail.com (Sid) — Tue, 03 May 2011 00:53:00 +0000

Elliott Wave Analysis of the US Dollar Index EUR/USD currency pair S&P 500 US Stock Market Index Gold Silver & Crude Oil by Sid from ElliottWavePredictions.com. Covered Topics: Today may have been a VERY important day in the markets. The US Dollar and the Euro may have seen a long term trend change starting at about noon today, which, if correct, is likely to end the commodities bull market almost immediately.

FYI: I don't post much to this site any more, so please check out my new site: http://ElliottWavePredictions.com. Thanks . . .Sid

Elliott Wave Analysis of the Nasdaq Index by Sid from ElliottWavePredictions.com

sidscharts@gmail.com (Sid) — Wed, 06 Apr 2011 02:30:00 +0000

Elliott Wave Analysis of the Nasdaq Index by Sid from ElliottWavePredictions.com. Covered topics: It appears that the Nasdaq is in the early stages of a triangle for wave 4 black, which will likely last 6-8 weeks. At the end of the triangle, I expect a quick and aggressive thrust to new highs above the October 2007 high, to be followed by a bear market, eventually taking the Nasdaq to slightly below its October 2002 low.

Elliott Wave Analysis of the major US Stock Market Indices by Sid of ElliottWavePredictions.com

sidscharts@gmail.com (Sid) — Sun, 03 Apr 2011 23:04:00 +0000

Elliott Wave Analysis of the major US Stock Market Indices (S&P DJIA Nasdaq, & Russell) by Sid of ElliottWavePredictions.com. Despite the counts being somewhat different on the Nasdaq/Russell compared to the S&P/Dow, further upward movement is expected in each before the wave structures can be considered complete. The remaining upward movement is likely to be volatile, choppy, and overlapping, and should last a few more weeks . .

Elliott Wave Analysis of the EUR/USD & GBP/USD currency pairs by Sid of ElliottWavePredictions.com

sidscharts@gmail.com (Sid) — Sun, 03 Apr 2011 22:51:00 +0000

Elliott Wave Analysis of the EUR/USD & GBP/USD currency pairs by Sid of ElliottWavePredictions.com. Covered topics are the expectation for a major trend change in the Euro within the next few days, and a revision of my Elliott Wave count of the British Pound Sterling, where the end of a wave C of a long term triangle should correspond nicely to the trend change in the Euro . .

Elliott Wave Analysis - S&P 500 SPX Index by Sid from ElliottWavePredictions.com

sidscharts@gmail.com (Sid) — Sun, 27 Mar 2011 19:45:00 +0000

Elliott Wave Analysis - S&P 500 SPX Index by Sid from ElliottWavePredictions.com. Covered topics are 1) the continued viability of my long term count; 2) why I have three viable short term counts, and the subsequent expectations for each; and 3) how standing aside is sometimes the smartest trade . .

Elliott Wave Analysis - EUR/USD & GBP/USD from Sid at ElliottWavePredictions.com

sidscharts@gmail.com (Sid) — Sun, 27 Mar 2011 17:03:00 +0000

Elliott Wave Analysis - EUR/USD & GBP/USD from Sid at ElliottWavePredictions.com. Covered are the long, intermediate, and short term expectations for two curencies: the Eurusd Euro currency pair and Gbpusd british pound sterling. Both pairs are expected to turn bearish after completing their respective Elliot Wave structures . .

Elliott Wave Analysis - GBP/USD gbpusd Pound Dollar - by Sid from ElliottWavePredictions.com

sidscharts@gmail.com (Sid) — Wed, 23 Mar 2011 01:36:00 +0000

Elliott Wave Analysis - GBP/USD gbpusd - by Sid from ElliottWavePredictions.com. Covered topics are the long, intermediate, and short term expectations for the British Pound Sterling, including upward price and time targets, as well the likely direction of the forex currency pair later in the year, as compared to the US U.S. Dollar . .

Elliott Wave Analysis - EUR/USD Euro EURUSD from Sid at ElliottWavePredictions.com

sidscharts@gmail.com (Sid) — Tue, 22 Mar 2011 00:32:00 +0000

Elliott Wave Analysis - EUR/USD Euro EURUSD from Sid at ElliottWavePredictions.com. Topics: 1) The Euro is continuing to move up as expected, 2) How to determine the target zone for the wave 4 black to end, 3) How the MACD can be used to confirm that the upward movement is finished, and 4) how the eventual downside target zone will be determined.

Elliott Wave Analysis - S&P 500 SPX from Sid at ElliottWavePredictions.com

sidscharts@gmail.com (Sid) — Mon, 21 Mar 2011 22:32:00 +0000

Elliott Wave Analysis - S&P 500 SPX $SPX Index - from Sid at ElliottWavePredictions.com. Covered are today's confirmation of my long and short term Elliott Wave count, as well as one primary, plus two alternate short term counts, including price targets and invalidation points.

Elliott Wave Analysis - EUR/USD Update from Sid at ElliottWavePredictions.com - eurusd euro US dollar

sidscharts@gmail.com (Sid) — Thu, 17 Mar 2011 23:02:00 +0000

Elliott Wave Analysis - EUR/USD Update by Sid from ElliottWavePredictions.com. Topics include the continued viability of Sid's count for the Euro, first posted on February 23 at ElliottWavePredictions.com. Expecting imminent strong upward movement to end in a tight zone between 1.4283 and 1.4361, to be followed by a 2400+ pip move to the downside over the next few months . . ... (more info)

Elliott Wave Predictions S&P 500 SPX Update 3-16-11

sidscharts@gmail.com (Sid) — Thu, 17 Mar 2011 01:44:00 +0000

Elliott Wave Predictions S&P 500 SPX Update 3-16-11. The thrust from the triangle hit my target EXACTLY today and bounced off. So far so good. There are 3 possible scenarios moving forward. If price can move above 1294.96 before moving below 1227.08. the bear market hasn't arrived just yet . . .

Sid's Elliott Wave Analysis - S&P DAX Gold & Euro

sidscharts@gmail.com (Sid) — Mon, 14 Mar 2011 05:19:00 +0000

Sid's Elliott Wave Analysis and Predictions for the S&P 500 (SPX), Geman DAX, Gold, and Euro (EURUSD). Covered topics are: 1) the remaining consequences caused by the triangle pattern in the S&P; 2) how the DAX predicts major tops in the US Stock Market; and 3) how the SPX, DAX, Gold and Euro are in the process of completing a 5th wave up, and are therefore primed to join in an all-assets correction . .

YouTube video: Sid's Elliott Wave Analysis & Predictions for the DJIA S&P Nasdaq & Russell

sidscharts@gmail.com (Sid) — Fri, 11 Mar 2011 02:42:00 +0000

Sid's YouTube video: Elliott Wave Analysis & Predictions for the Dow Jones Industrial Average ($DJIA), S&P 500 ($SPX), Nasdaq ($COMPQ) & Russell 2000 (RUT) - the primary US stock market indices - March 10, 2011.

YouTuve video - Elliott Wave Analysis of Nasdaq - Trading a triangle

sidscharts@gmail.com (Sid) — Thu, 10 Mar 2011 03:11:00 +0000

From an Elliott Wave perspective, the Nasdaq index, as well as the S&P may be in the process of carving out a triangle structure. This video shows how to properly predict the length of the thrust from a triangle using the Elliott Wave principle. Also, since thrusts from triangles are terminal, meaning they mark the end of a corrective structure, if the stock market does experience a thrust from a triangle within the next few days, my next video will show the subsequent predicted target range for the next wave, based on the most likely Fibonacci relationships it'll have with waves completed days, weeks, and months ago . . . Stay tuned . . . Sid

S&P 500 Elliott Wave Analysis - part 1 of 2 - Sid's count and prediction

sidscharts@gmail.com (Sid) — Mon, 07 Mar 2011 03:43:00 +0000

S&P 500 Elliott Wave Analysis - part 2 of 2 - Sid's count and prediction

sidscharts@gmail.com (Sid) — Mon, 07 Mar 2011 03:41:00 +0000

YouTube video: Nasdaq Index ($COMPQ) Elliott Wave Analysis - Sid's alternate count - long & short term

sidscharts@gmail.com (Sid) — Sat, 05 Mar 2011 21:22:00 +0000

I've made the script from the above video available below, so those of you who prefer a language other than English may use a translation program to follow along:

Hi, this is Sid from ElliottWavePredictions.com. Today, I've prepared several timeframe views of the Nasdaq Index, symbol $COMPQ. In previous posts, I've shown a very bullish long term Elliott Wave count, but today, I'd like to present my alternate count, which may be quickly morphing into my primary count, because of several key aspects, which I'll be presenting in this video. Before we start, be sure to change your YouTube viewer setting to 720P (at the lower right of the viewer frame).

First, lets switch to the monthly candles. If you've been following my posts, you know the importance of this wave starting in March 2000 descending in 5 waves. This was followed by a 3-wave A, and a 3-wave B (primary/burgundy), setting up the expectation of a 5 wave impulse to the upside, terminating beyond the extreme high of October 2007. This would complete the corrective FLAT structure, in Elliott Wave terms.

It is this Primary (burgundy) wave C to the upside that I'd like to break down further in this video. Now switching to weekly candles, I'm expecting 5 waves up from this March 09 low. So far we've seen 5 waves up to complete Intermediate wave 1 (black), and 3 waves down for wave 2 black, followed by 5 waves up for what I have labeled here as wave 3 black. This is where this count differs from my earlier posts. There are two aspects accompanying the placement of the wave 3 black label here that I think are important.

First, the MACD, which generally registers its highest point during an impulse at the extreme of wave 3, has registered a new high on the weekly chart, and has subsequently turned downward. Secondly, thanks to the trusty measuring tool that included with the Genesis Trade Navigator charting platform I use, we can see that wave 1 black was 126,938 ticks in length, and wave 1 black, if it ended here, measured 77,986 ticks, which means that wave 3 black is .614 the length of wave 1 black. This is amazingly close to the most important Fibonacci relationship, .618, the "golden mean".

If wave 3 black did end here, we would expect wave 4 black to not travel into the price territory of wave 1 black, and then we would expect wave 5 black to move beyond the extreme of October 2007 to complete the FLAT. Additionally, wave 5 black would have to be shorter than wave 3 black, because wave 3 cannot be the shortest of waves 1, 3, or 5 in an impulse. So, if this count is correct, after wave 4 completes, we'll be able to publish an upside maximum for wave 5 black, which would complete, in all likelihood, Cycle (teal) wave B.

Now moving to daily candles, additional fuel for placing the wave 3 black here is that pink (Minute) wave 3 within wave 3 black produced the highest MACD reading on this daily chart, and also, wave 2 orange (Subminuette) within wave 5 green (Minuette), within wave 5 pink has now been breached to the downside.

Also, switching to a 90 minute chart of the Nasdaq futures contract NQ, this initial down wave counts best, I believe, as a 5 wave impulse, and the subsequent upward movement breaks down nicely into a "3" (green W, X, & Y). You might want to pause the video here to examine the 5 confirmations of a trend change notated around the chart.

So, this count is calling for almost immediate downward movement to below the extreme of wave a pink at a minimum, but possibly moving as low as the extreme of wave 1 black, which on the e-mini, is 2053. As this chart shows, since the invalidation points are very close by, this is a good example of a low risk, high reward shorting setup. Remember, we are nearing March Expiration, so I would think that playing the June expiration contract would be the preferred choice here.

A quick note, I generally trade the Nasdaq E-mini and the EUR/USD currency pair. If you would like to see my Elliott Wave take on other instruments, send an email request to me at ElliottWavePredictions@gmail.com.

My Disclaimer: All my posts are strictly for educational purposes, and are not intended as recommendations for trades and/or investments. This is Sid from ElliottWavePredictions.com. See ya soon . .

YouTube video - Nasdaq E-mini - March 3, 2011 - 90m candles - The correction needs one more wave down to complete . .

sidscharts@gmail.com (Sid) — Thu, 03 Mar 2011 16:06:00 +0000

One little correction to what I said in this video: From my February 23 Pink wave A label, the wave "a" orange that immediately follows breaks down into a 3, not a 5.

Also, please note, if price moves above 2403 before it moves below 2285, wave 2 blue almost certainly ended on February 23rd, and wave 3 blue of wave 3 black is likely underway, and should exhibit intense upward movement . .

I've made the script from the above video available below, so those of you who prefer a language other than English may use a translation program to follow along:

Hi, This is Sid from ElliottWavePredictions.com, with a short update on the Nasdaq, and how I am counting the Elliott Waves on this 90 minute chart. As my earlier posts regarding my long term count showed, I believe this February 16 high is a blue wave 1 within a black (intermediate) wave 3 to the upside.

As bullish as that sounds, I don't think this little correction we're in is complete, and here is how I'm counting it, and what I think is likely to therefore occur. Critical to the count is how this downward wave from February 16th thru February 23rd breaks down. I think it counts best as a 5 wave impulse.

This is followed by what I am counting as a yet incomplete "double three" combination correction, with an expanded flat for wave W green, a zigzag for wave X green, and a zigzag for wave Y green to complete wave B pink, which may not finish until the end of trading this week.

Those corrective waves subdivide as follows . . . .

When compete, this wave B pink should be followed by 5 green waves down to complete wave C pink, and possibly wave 2 blue as well. That downward move, if this all started with an impulse 5-wave pink wave A, must end at least below that extreme, so that would take us under 2285.

Also worth noting is that traders will be starting to roll their stock market futures contracts forward from the March to the June expiration contracts next week. I believe that many traders, rather than simply taking profits on their longs, and then blindly re-entering a new long position at whatever the current price level is, will consider taking profits here, and waiting for a better entry point to get long again. This could create the one-sided selling needed to get down to the 2285 level or below, which will complete the Elliott Wave corrective pattern.

Disclaimer: My posts are for educational purposes only, and are not intended as recommendation for trades and/or investments.

This is Sid from ElliottWavePredictions.com. See ya soon!

EUR/USD - March 2, 2011 - Daily Candles. The bullish pink (minute) wave 3 finally gets going . .

sidscharts@gmail.com (Sid) — Wed, 02 Mar 2011 17:40:00 +0000

The EUR/USD currency pair finally got legs today, and broke through a key resistance line at 1.38631 (ask). This is the behavior I've been looking for to confirm my long term Elliott Wave count for the Euro. The Euro should not only continue to the upside as I had predicted, it may "prop up" the US stock market for a little bit, until these 5 pink waves to the upside are complete. At that juncture, when the Euro turns southward, the stock market may be less resistant to downward movement. (See my long term Elliott Wave forecast for the Nasdaq Index), as well as yesterday's post: a closer look at my Nasdaq Elliott Wave count.

YouTube video and script: A closer look at the Nasdaq correction in progress

sidscharts@gmail.com (Sid) — Wed, 02 Mar 2011 05:07:00 +0000

I've made the script from the above video available below, so those of you who prefer a language other than English may use a translation program to follow along:

Hi, This is Sid from ElliottWavePredictions.com. Yesterday, I posted a video showing monthly candles on the Nasdaq COMPQ Index. Actually, lets move to that chart first, because I've added a bit more detail, breaking down the wave 3 black here. It appears that wave 1 blue is complete, and that we are now in a wave 2 blue correction. As you can see, the downward movement that started February 16th is hardly a blip on the screen when looking at monthly candles. So lets switch over to the weekly candles. Here is quite a bit more detail regarding the internal structure of the waves. As I covered yesterday, I'm counting the rise through November 2007 as a 3 wave ABC zigzag, followed by another 3-wave zigzag retracing 90.1% of Primary (burgundy) wave A, and lasting until March 2009.

How this particular wave is interpreted is critical to the long term Elliott Wave count! Some are counting it as a 5 wave impulse for a wave 1 down, which would require, in Elliott Wave terms, a subsequent historic bear market, moving eventually well below the March 2009 low. As for me, I am counting it as an ABC zigzag for a Primary (burgandy) wave B of an apparent "flat" correction (in Elliott Wave terms).

By the way, my website, ElliottWavePredictions.com has a number of links on it to the finest free Elliott Wave educational materials available on the internet. These are the same materials I used to learn the wave principle. For instance, look for my complete outline of the wave principle, in its entirety.

Of huge importance now, since I'm counting this downward move from November 2007 through March 2009 as 3 waves, is that a subsequent 5 wave bull market is the expectation. So how is the upward movement since March 2009 best counted, when expecting 5 waves? Well, we got 5 waves through April 2010, bu importantly, not to a new high. The 5 waves we must see, if this count is correct, must eclipse the April 2010 high. Otherwise, we are looking at an almost impossibly rare running flat. It seems much more likely that we will go on to get our 5 waves up to a new high, especially since we got so very close (within 56 points) in February. As a matter of fact, we got so close, I believe this count is also much more likely than the huge, decades long triangle some are calling for, starting in October 2002, of which we would only waves A, B, and C now complete after 9 years. I think we just got through coming way too close to the invalidation of the triangle scenario to take it too seriously at this juncture.

This upward move from the June 2010 low seems to have finished its own 5 waves now, so I have labeled that high as blue (minor) wave 1, or alternatively, a short intermediate wave 3 black of Primary (burgundy) wave C. Either way, after the current correction completes, both my primary and secondary counts are calling for an upward move to complete 5 waves up, and to a now high, eclipsing the April 2010 high, which will be the highest reading for this index since February 2001.

Now lets zoom in and look at the correction going on now. For that, I'd like to look at the 360 minute candles of the Nasdaq e-mini, symbol NQ, which is how I trade the Nasdaq. My target zone for this correction is a zone starting from 2132, which is the .382 fibonacci retracement of the length of wave 1 blue, to 2082, the extreme of the wave 4 of one lesser degree, which in this case, is wave 4 pink (Minute).

Now taking a closer look at the correction so far using the 180 minute candles, I'm counting 5 waves down for a wave A pink, and a completed pink wave B up of an expanded flat, and now the terminal 5 green waves are underway, with wave 1 green nearly complete.

Switching now to the 60 minute candles of the NQ e-mini, we can see a nearly complete 5 wave structure down to complete wave 1 green, and I'm now expecting at around a .382 retracement up to near the extreme of the previous wave 4 of one lesser degree, and then LOOK OUT BELOW for a couple of weeks, while waves 3, 4, and 5 green complete to the previously deliniated target zone.

So, to conclude, we're getting a correction here, but I believe the bull market is still in tact until a 5 wave structure to the upside completes to new 10-year highs on the monthly and weekly charts.

My Disclaimer, everything I post is for informational purposes, and is not intended to be recommendations for trades and/or investments. This is Sid from ElliottWavePredictions.com. See ya soon!

YouTube video - Sid's long term Elliott Wave analysis of the Nasdaq index ($COMPQ)

sidscharts@gmail.com (Sid) — Mon, 28 Feb 2011 17:38:00 +0000

I've made the script from the above video available below, so those of you who prefer a language other than English may use a translation program to follow along:

Hi, this is Sid from ElliottWavePredictions.com. In today's video, we'll be taking a long term view of the Nasdaq Index, symbol $COMPQ. This chart is made up of monthly candles.

I've labeled this March 2000 high as a probable Supercycle top, but whether that's what it is or not doesn't matter here in this video. The most important thing about the Elliott Wave labeling on this chart is that the bear market in the Nasdaq from March 2000 to October 2002 occurred in a clear 5 waves down. Also key is that the subsequent upward movement through October 2007, which I have labeled here as Primary (burgundy) wave A, is NOT impulsive, because the middle section is choppy and overlapping. In my opinion, it counts best as an ABC zigzag.

The, the strong downwavd movement that followed through March 2009, which many have tried to force a 5-wave impulsive count onto, actually, in my opinion, counts best as yet another ABC zigzag. Also important is that this wave, which I've labeled as Primary (burgundy) wave B, retraced 90.1% of the distance traveled by Primary wave A, therefore meeting the Elliott Wave requirement in a "flat" correction that wave B retrace at least 90% of wave A.

Since we now have a correction that has started with 3 waves up, followed by a 3-wave retracement of at least 90%, we therefore are looking for the "flat" structure to complete with a 5 wave impulsive move to the upside, eclipsing the extreme of Primary (burgundy) wave A. Since this correction from the October 2002 low has already eclipsed the .382 Fibonacci retracement level (measured from the March 2000 high), it is reasonable to expect that Primary (burgundy) wave C will be seek out the .618 fib level.

This is what I've depicted in this projection, with an already finished intermediate (black) wave 1 and wave 2, with wave 3 now in progress, to be followed by waves 4 and 5 (black), to complete the bear market rally in the Nasdaq.

Why do I refer to the movement since the October 2002 low a bear market rally? Because the downdraft from March 2000 through October 2002 occurred in a clear 5 waves, and this wave followed a parabolic rise to the all-time high, which lasted for many decades. Since that bear market occurred in 5 waves, it CANNOT be considered a complete corrective structure, which means that the Nasdaq Index is destined to eventually move below 1108, as depicted here.

Thanks for watching, and be sure to check my website, ElliottWavePredictions.com for regular postings, many of which present potential short term high-reward, low-risk trading ideas in the markets. Also, the site includes links to the finest Elliott Wave educational materials on the internet, almost all of which are free.

Disclaimer: All my posts are informational only, and are not intended as trading or investment recommendations.

This is Sid from Elliott Wave Predictions. See ya again soon!

YouTube video: Sid's long & intermediate term Elliott Wave analysis of the EUR/USD currency pair

sidscharts@gmail.com (Sid) — Sun, 27 Feb 2011 20:17:00 +0000

I've made the script from the above video available below, so those of you who prefer a language other than English may use a translation program to follow along:

Hi, this is Sid from ElliottWavePredictions.com. In today's video, we're going to start with a very long term view of the EUR/USD currency pair, and then we'll keep zooming in so we can predict to a high degree of probability what's going to happen in the next few days and weeks. This chart consists of monthly candles and goes all the way back to 1976, Since this low below .7 in February 1985, the Euro has moved up in a 23 year long zigzag in Cycle Waves A, B, and C. Those break down as a 5-3-5.

After this high in July 2008, the Euro has moved down below the extreme of the September 1992 high, so this structure cannot be a 1-2-3-4-5 impulse to the upside. We must therefore expect, at a minimum, a complete 3-wave corrective structure down from the July 2008 high. So lets zoom in to the weekly candles and examine the movement since that high, which we have labeled here as a Cycle wave B of an Expanded Flat (in Elliott Wave terms). However, lets ignore that for now as we narrow down the possibilities of exactly what this structure is, once again, in Elliott Wave terminology.

So far, we've had what counts best as 3 waves down, then 3 waves up, then 3 waves down to a new low in June 2010. Most importantly, these 3 waves cannot be considered a complete 3 wave correction. They can't be a zigzag, because zigzags break down as a 5-3-5. They can's be a flat, because flats are 3-3-5. The can't be the start of a triangle, because the June 2010 low is lower than the October 2008 low. They also can't be a 1-2-1-2 start to a bearish pattern, because they subdivide into 3's. What's left as most probable then is a Leading Contracting Diagonal for Primary wave 1 (burgundy) to the downside.

If this count is correct, this upward movement since the June 2010 low MUST form a zigzag to complete intermediate wave 4 black. One of the Elliott Wave rules is that waves 2 and 4 of a leading diagonal always subdivide onto zigzags. Also, by the way, the MACD is confirming this count, by making lower highs and lower lows. This is typical MACD behavior in a diagonal. Also, wave 3 is shorter than wave 1. This must therefore be a contracting leading diagonal. So, I've drawn a line between the extremes of waves 1 and 3 black, and have placed a parallel copy intersecting the extreme of wave 2 black. We now have a maximum resistance line for wave 4 black.

Once wave 4 black is finished, if this count is correct, the Euro must descend to below 1.875 because another Elliott Wave rule is that wave 5 of a leading diagonal must end beyond the extreme of wave 3. Another Elliott rule is that a wave 5 of a contracting diagonal is always shorter than wave 3, so the maximum depth for wave 5 black, and therefore Primary wave 1 (burgundy) is 1.0133.

The only question left is, when will the Euro start to go down? The answer isn't completely clear yet, so lets look at the wave 4 black so far to determine its most likely ending target zone. My preferred count is that so far we have seen 5 pink waves up for wave A blue, followed by 3 pink waves down to complete wave B blue, and we therefore need to see 5 pink waves up to beyond the extreme of wave A blue to complete wave C blue, and therefore intermediate wave 4 (black).

Or, as some are claiming, we may have already seen the completion of waves A, B and C blue, and that wave 4 black may have ended here. However, lets take a closer look at this most recent movement starting with the June 7, 2010 low on a daily chart. This wave A blue counts best, in my opinion, as a 5-wave impulse, and the MACD bears this out by peaking at right about the wave 3 pink label, and the diverging. While the wave 5 peak made a new high, the MACD did not. This is typical MACD behavior in a 5 wave impulse.

Also, the price movement after the November 4, 2010 high really supports this count. We have an ABC for W, an ABC for X, and an ABC of Y to complete wave B blue (minor). Then, very importantly, this is followed by 5 waves up, which I've labeled pink wave 1, and then a 3 wave ABC down for pink 2. So, therefore, I'm expecting a complete 5 pink waves up to complete wave C blue, and therefore wave 4 black. The minimum target for wave 4 black, because this structure since the June 2010 low must be a zigzag, is 1.42834, the extreme of wave A blue. The maximum is the slanting line up here, which is that line we drew intersecting the extreme of wave 2 black, which is parallel to a line drawn between the extremes of waves 1 and 3 black.

So, there you have it. This count calls for the Euro to climb to the 1.45 region over the next couple of weeks, and then drop about 300 pips over the following 12 months or so. One thing though, when looking at 4 hour candles, I'm expecting strong upwards movement virtually immediately. If that doesn't happen, and this trend line drawn from the start of wave 1 pink through the extreme of wave 2 pink breaks, wave 4 black may have already ended, and the downward movement to below 1.2 may have already begun. The character of the price movement over the next couple of days will tell us which count is correct.

Thanks for watching. I hope this video will be helpful to your trading. I'll be making these videos from time to time to explain more fully what my regular chart postings at ElliottWavePredictions.com are all about. Disclaimer: All of my posts are informational only, and are not intended as recomendations for trades and/or investments. This is Sid from Elliott Wave Predictions. See ya soon . .

Nasdaq E-mini - February 24, 2011 - 60 minute candles. Further consolodation expected for a couple of days before selloff resumes . .

sidscharts@gmail.com (Sid) — Thu, 24 Feb 2011 21:30:00 +0000

Here is my count of the correction so far in the Nasdaq. I don't believe a full 5-wave downside structure is complete, which means, with only 3 waves finished, it might be dangerous to be shorting as of yet. The last little move to the downside appeared to subdivide into just 3 waves, so I believe it was a wave B of an expanded flat. The downward momentum eased today, with the MACD on the 1-hour chart now showing considerable divergence. The next new low isn't likely to be a deep one, but just a slight new low created by 5 waves down, which will confirm that a 5-wave pink A of a bearish ABC zigzag is complete. This will be required to indicate that there is more of this correction to come.

As the chart depicts, a complete wave A (pink) should be followed by a pink wave B, likely a 3-wave retracement to about 2335, the extreme of the wave 4 of one lesser degree. At that point, I'll be expecting very aggressive selling to commence, with an eventual downside target of around 2082 to complete pink wave C, and therefore, the blue wave 2 correction. The next movement after that, if my longer term prognosis is correct, will be almost parabolic buying. Should be interesting!

EUR-USD - February 24-2011 - 15 minute candles. A closer look at the potential shorting opportunity . .

sidscharts@gmail.com (Sid) — Thu, 24 Feb 2011 17:35:00 +0000

Here is a closer look at the potential ending diagonal (at micro/purple degree) in the Euro, and the associated low risk/high reward shorting opportunity, as well as the proper entry point for this strategy (in my opinion), and most importantly, where the stop would go (about 5 pips above invalidation).

Remember, this is my alternate count. My primary count, which admittedly is looking a bit questionable today because of the lackluster upward momentum, calls for the Euro to move all the way up into the 1.43-1.45 area. For that count, see http://sidscharts.blogspot.com/2011/02/eur-usd-february-23-2011-weekly-candles.html.

The key to this strategy is to get short just as close to that stop as possible, which makes the potential loss quite small . .

EUR/USD - February 24, 2011- 60 minute candles. Another nice risk-to-reward trade setup is forming on my alternate count . .

sidscharts@gmail.com (Sid) — Thu, 24 Feb 2011 17:12:00 +0000

What was my primary count since early late December 2010 is now my alternate count, and is shown above. (Please forgive the typo on the word "alternate" on the chart). It looks like an ending diagonal may be forming to complete wave 5 purple of wave c orange of wave 2 green of wave 1 pink (a leading diagonal) of wave 5 black of a bearish leading contracting diagonal for burgandy (primary) wave 1. Whew!

See http://sidscharts.blogspot.com/2011/02/introductory-post.html to get a bigger picture look at what is now my alternate count on the Euro.

The thing that makes this another great risk-to-reward shorting opportunity is that the invalidation point (1.38631 ask) is a very short 60 pips or so above the current price. The eventual target for wave 5 black is still under 1.2. Let's see . . Potential loss = 60 pips. Potential gain = 1800+ pips. Hmmm . .