AEX Moon Jupiter cycle

AEX is approaching the next Jupiter channel line (red), that has been a good indicator of turning points in the past. See image below. Today the line stands at 370 and is slowly moving up to 371-372 on May 24-27.

In the bottom of the chart I added the Moon cycle, showing the New Moons (highs) and Full Moons (lows). As a simple rule, go long on or just after the full Moon and go short on or briefly after the new Moon. However, this leads to false signals, sometimes the complete opposite! This can be avoided by adding the Jupiter lines. The Jupiter lines indicate a possible trend change, while the Moon cycle indicates when. The chart shows several important lows and high (yellow lines).

The Elliott pattern is still holding up well. See image below. The AEX is in the final stages of wave ‘e’ of ‘C’. Wave ‘C’ unfolds as an ending diagonal (3-3-3-3-3  wave). So wave ‘e’ is complete when a clear 3 wave is present. A small dip right now followed by the final thrust up would be ideal.

In 2013, there are two solar eclipses and three lunar eclipses. The first 3 are shown on the chart below, 2 already happened. The first Lunar eclipse marked the bottom of wave 4. The Solar eclipse did not seem to do much. The next Lunar Eclipse is May 25th, a Saturday. Looking at trading days that will give us May 24-27. Ideally the AEX will top out right at the 371 level, right at the Jupiter line. In this scenario the AEX should stay under the upper blue trend channel line as well, so that the contracting diagonal is still valid. Another indication that the trend is weakening is that the AEX is rising on declining volume. See the blue line in the volume. This indicates weakening demand.

Bottom line: Look for reversal signals at AEX 371 or around May 24th.