Elliott Wave Analysis: SPX, DAX, GOLD, BTC, JPYApr 26, 2022

Stocks found some support after a sharp drop in the past few sessions, but the US dollar keeps moving higher across the board. JPY does the same. EURUSD is trading at the lows despite ECB’s Kazaks comments who prefer the first rate hike in July after APP ends at the start of the month. China lockdowns also still has a strong impact on the markets, and this can get much worse in weeks ahead, spreading to other regions/markets.

From an Elliott wave perspective, we are seeing stocks in risk-off mode, with SP500 trapped in a big consolidation since start of the year. It’s ongoing fourth wave, with a complex Elliott wave shape. As long stocks will consolidate or even be in risk-off mode there can be some JPY recovery. Especially if BoJ would look for new policy decisions this week, or possibly even interventions. For that reason, we are tracking EURJPY, which has nice minor Elliott wave impulse down; pointing to a »temporary« top for the pair.

In our latest Elliott wave video analysis I will also talk about gold which is moving into wave C of an Elliott wave abc structure, with room for 1840. Drop belongs to a higher degree Elliott wave fourth wave consolidation that can be a Elliott wave triangle or even a Elliott wave flat, so short-term weakness, but long-term picture is unchanged.

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