Gold and S&P going in opposite directions – Elliott Wave

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Good morning traders! Today we are going to take a look at intra-day charts such as S&P500 and GOLD. 

Let’s begin with stocks:

US stocks turned sharply lower yesterday from 2490 on E-mini S&P500 which was actually our projected triangle measurement level for the fifth wave. Current drop is strong and suggests more weakness ahead, back to 2455 with three waves. As such any rally up to 2470/80 can be only an intraday corrective rise.

S&P500, 1H

As stocks move down, metals move up so it’s not a surprise to see higher prices on gold. Gold, as you know, had a clear corrective look down from the start of August; a complex correction that now appears finished. Broken channel line now suggests more upside ahead.

Gold, 1H

Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All our work is for educational purposes only.

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About Author

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of www.ew-forecast.com, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At www.ew-forecast.com he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!