Market Set For Risk-Off Mode – Elliott Wave Analysis

Market Set For Risk-Off Mode – Elliott Wave Analysis

The market keeps trading lower since last week, Thursday to be more precise when the S&P500 turned nice lower from around 1360 at 61.8% Fibo resistance.

Notice that prices broke through the channel support line and successfully closed below it.

S&P Elliott Wave Analysis June 25 2012
S&P Elliott Wave Analysis – Click image to enlarge

Guest post by Gregor Horvat
This is a bearish signal for this week, which means that USD and JPY should rally against other currencies. We are also keeping a very close eye on TLT, which is the ETF for US bonds, so when this market will find the bid, yields will fall which is bearish for stocks.

TLT is clearly in wave four, maybe already finished, so gains expected.

TLT Elliott Wave Analysis June 25 2012
TLT Elliott Wave Analysis – Click image to enlarge

And finally, here is dollar index, also showing a nice bullish trend-line break that should cause more buying in this week back towards high from early June.

US Dollar Index Elliott Wave Analysis June 25 2012
US Dollar Index Elliott Wave Analysis – Click image to enlarge

So based on three charts above, traders should be interested in Long USD or even JPY positions in this week.

Do you want more analysis similar to those!? Then subscribe now and take advantage of 2 for 1 offer.

Gregor Horvat

Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and His feature articles have been published on,, Action forex, Forex TV, Istockanalyst, ForexFactory,,, etc. He recently won the award on for Best Forex Analysis in 2016. At Ew-forecast 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!