Elliott wave analysis of DJI and Copper - Is an economic storm brewing?

Dow Jones Industrial Index Weekly

Dow Jones Industrial Index Daily

 

 

Dow Jones Industrial Index:

 

 

Please see my post from August 18. here first: http://theelliottwavesufer.blogspot.dk/2013/08/elliott-wave-analysis-of-dji-and-apple.html

 

 

We are closing in on the important support at 14,551, which I expect will protect the downside on the first attempt to break below it, but after a correction towards maybe 15,109 or even 15,239 we should see a new attempt to break below the important support at 14,551 and this time we should expect a break below it for a continuation lower towards at least 13,443 and possibly even lower.

The decline from the all time high at 15,658.43 has clearly all the characteristics of an impulsive decline and all we need now is a break below 14,551 to confirm, that the bears are in control of this market.

Copper:

It has been a while since my last post on copper (you can see it here: http://theelliottwavesufer.blogspot.dk/2013/04/elliott-wave-analysis-of-dji-facebook.html). As can be seen the Shoulder/Head/Shoulder neckline has just been retested a second time and the next attempt to break below important support at 2.99 will most likely be successful and call for a decline towards the the S/H/S target just above 2.0
It seems both DJI and Copper is confirming a slowdown in the economy. If my expanded triangle Count for the DJI is correct it will be a nasty economic slowdown.  We don't have the final confirmation yet, but take your precautions and be ready for what might be coming. As we saw it in 2007-2009 a economic slowdown in the US of this magnitude will effect the rest of the World too, so don't just lean back because you don't live in the US. Be ready for the possibility of a BIG economic storm during 2014-2016. I anticipate a stock market panic some time during 2015.

VIX Index:

It has been a long time since I have shown my VIX-barometer.

As can be seen on the chart above, we had some major shifts in the mood in 2010 and 2011, where we went from complacency to a fearful market, but from August 2011 it has been a one way ticket well into a state of complacency and only just this last month does the mood seem to be shifting towards a more concerned market. We are still no way near anything, that makes the market feel uncomfortable, but it should be noted, that we saw a bullish engulfing month i August and that is the first sign in a long time, that the mood is swinging towards a more fearful market.