Market update

Summary

Equity markets

Market Next few days Next few weeks Next few years
US Equities Down Down Down to sideways
European Equities Down Down Down to sideways
Asian Equities Down Down Up to sideways
Swedish Equities Down Down Down to sideways

Interest rates

Market Next few days Next few weeks Next few years
US rates Up Up Up
European rates Up Up Up

Details

Equity markets

Markets are dropping heavily! I have several Elliott counts that I am tracking but my best guess right now is the one below for the S&P 500.


Friday closed at the lows and I am afraid that Monday could see a continued big fall from the start. Look at the long term chart below, we have corrected NOTHING of the last bull market so we have quite a big downside if this one gets going.

From a trading perspective, I am looking for the S&P 500 to test 2532 in order to give me information with regards to if prices are accepted below that level or if a bounce will start from there and head up into a wave (ii) correction. A lot of alternative wave counts will be negated if 2532 is crossed and this will make my life easier for future trades! I will cover some of my short positions around 2532 and wait for more information.

The Swedish OMX 30 Index is not very easy to analyze but my best guess is the count below.

This means a sideways / down market for a few years still in the making.

For traders, this is a great time, for longer-term investors it sucks and you need to depend on some other form of income for the next few years.

Good luck on Monday!

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