31 May 2019

Strong Pessimism

Trump’s proposed tariffs on imports from Mexico has triggered strong pessimism over the future of global economies, already concerned with the unresolved trade war with China and outstanding issues in the Middle East and North Korea. The STI has nosedived out of the correction channel. We await the completion of Subwave b (brown) to lead to the formation of counter-correction Subwave c (brown) to complete Wave B (brown).

There is no guarantee that Subwave b (brown) has bottomed. If it falls below the orange line, which is the end of Wave A (brown), the current wave count will have to be revised. As I have said several times, predicting corrective wave structures is very difficult as the waves can move in different directions.

The worry is that world markets may soon fall into deep corrections.

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