AEX needs to bounce now

130417 AEX


The AEX counts best as an ABCDE ending diagonal that needs 1 more leg up. See the April 12 article. Wave D either ended in February or is ending right now, in which case wave D is a triangle. Regardless, in both counts, wave E up is needed to complete the pattern.

Notice the extraordinary amount of Fibonacci ratios that can be found. Similar ones, but not shown, are ratios that connect to the end of wave E. Ideally, wave E needs to end mid May around 360-365.

Other observations:

* The index is also poking at two support lines.

* The put call ratio favors a short term bounce. It might hover around current levels until the options expiration tomorrow is out of the way.

If the AEX drops right now from current levels then something else is going on and current Elliott waves need to be revised.

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