Market Flash Crash? Risk-off events?

What does Elliott Wave Analysis have to say about this?

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Risk-off period appears to be making an impact on the charts and on the price action movements.

With the “VIX Spike & US Indices – Bears Territory” article, a scenario out of the ordinary was explained and then backed-up with charts and technical analysis.

The mentioned scenario reflects a possibility for a volatility spike and a rememberable sharp decline in global indices.

As mentioned above, this scenario might sound a bit extreme, but what if it happens? How would a trader or investor react to such a sudden dose of fear?

In the lines below, a complete wave count update will be shared, to possibly assist some individuals following this thread.

The wave counts listed below contain a revised version of last month’s “Orbex Q3 – Market Outlook Report 2018” downloadable PDF.

If such spike in the VIX would occur, the bigger picture would reflect the following scenarios as a possible outcome:

  • USD weakening or remaining frozen until further signs of consolidation exit.
  • US Indices entering bears territory and losing huge grounds before a bull market continuation.
  • EUR remaining within the sideways trend or exiting the consolidation.
  • YEN strengthening on market uncertainty sentiment and save haven outcome.
  • Metals remaining vulnerable to such shock but with a possibility to commence a medium-term bullish correction.
  • WTI reflecting further weakness ahead until higher signs of demand.

*This article contains delicate information and should not be treated as an investment advice or as a solicitation the trade. Risk must be considered.

Elliott Wave Counts & Updates

 The bullet points below are written and shared under the presumption that the current wave counts and overall directions are valid or correct.

VIX – 2H Chart

  • Volatility spike expected and along with it, a period of fear and uncertainty for global equities.

DXY – Daily Chart

DXY forex

  • Bearish outlook with a Minor C (red) remaining in focus, for the current corrective structure to finalize in Intermediate (B) (turquoise).

XAU/USD – Daily Chart

  • Vulnerability expected as a reaction, but with a larger degree bullish correction in focus.

XAG/USD – Daily Chart

  • Slightly more downside risk as a possibility, but with a larger degree bullish swing in play.

WTI – Daily Chart

  • Impulsive bearish swing expected to continue further on the down-side, but with higher grounds remaining as an option.

EUR/USD – Daily Chart

  • Triangle formation could reflect further downside risk, with a possibility to commence a bullish swing which would mirror a completion of the Intermediate (B) (red) structure.

USD/JPY – Daily Chart

  • Impulsive bearish leg expected to continue as a result of the fear effect and investors moving attention towards more safe-haven assets.

DAX30 – Daily Chart

DAX30 forex

  • Impulsive bearish leg expected to commence along with the VIX spike, until further signs of larger degrees patterns completion.

US30 – 4H Chart

  • Impulsive bearish swing expected to start in Intermediate (C) (red), as a result of the Complex Triangle completion in Intermediate (B) (red).

SPX500 – 4H Chart

  • Impulsive bearish swing expected to start in Intermediate (C) (red), as a result of the Complex Flat Structure completion in Intermediate (B) (red).

NAS100 – 4H Chart

  • Impulsive bearish swing expected to start in Intermediate (Y) (purple), as a result of the Complex Expanded Flat Structure ending in Intermediate (X) (purple).

Reminder:
*This article contains delicate information and should not be treated as an investment advice or as a solicitation the trade. Risk must be considered.

Many pips ahead!

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