Think Coronavirus Caused the Crash? These Two Charts Beg to Differ

By Elliott Wave International

Just about everyone thinks the coronavirus pandemic slammed global stock prices in February and March. Entire countries shut down; businesses closed up shop; unemployment soared. People stopped spending money beyond the essentials, so conventional wisdom would indeed expect stocks to slide as a result. Yet consider the below chart of the Shanghai Composite, China's primary stock index.

Far from prompting a new bear market, the chart shows that the novel coronavirus appeared in Wuhan after a dozen-plus years of net decline in Chinese stock prices. Did the bear market instead prompt the pandemic?

Before we answer, let's look at one more chart. The below chart shows the Dow Jones Industrial Average plotted against the daily number of new U.S. COVID-19 cases reported to the Centers for Disease and Prevention. The CDC's case count is a function of disease prevalence, testing capacity and social awareness of the virus.

The Dow peaked on February 12 and began a precipitous fall, finishing the month down some 14% from its high. Yet the number of new daily COVID-19 cases essentially rounded to zero until March 3 when it hit double digits for the first time. Six days later the new daily case count reached triple digits for the first time; a week later new daily cases exceeded a thousand. By then, the Dow was already down more than 29% from its high. These data indicate that the fall in the Dow preceded the acceleration in confirmed new COVID-19 cases in the U.S., not the other way around.

The Dow registered a low on March 23, yet daily new COVID-19 cases continued to soar; on April 7, new cases peaked at 43,438. By then the Dow had already rebounded strongly, up 22% from its low. As the Dow continued higher in the following weeks, the number of new COVID-19 cases receded. These data indicate that the rise in the Dow from its March low preceded the decline in confirmed new COVID-19 cases in the U.S., not the other way around.

In summary: The market led, and the virus followed.

How can we make sense of these data? Robert Prechter's socionomic theory proposes that social mood regulates the aggregate tenor and character of social trends -- including the stock market and our collective susceptibility to epidemics. As social mood becomes more negative, society sends stock prices lower and becomes more vulnerable to epidemics. As social mood becomes more positive, society sends stock prices higher and becomes less vulnerable to epidemics.

Because society's mood changes are swiftly reflected by the stock market, its trends tend to precede those of other mood manifestations. Thus major epidemics generally emerge or accelerate in countries after large-degree bear markets begin, a proposition which more than a century and a half of history supports.

We can also use socionomics to understand why the world was so unprepared for the coronavirus pandemic. Pundits place the blame on leaders, institutions and the absence of information. But a report from the May 2020 issue of The Socionomist goes deeper to reveal the true source of society's complacency. It also illuminates how to use the stock market to identify when further risks to our lives and livelihoods are likely to intensify. You can read the entire issue when you join ClubEWI, the world's largest Elliott wave educational community. Membership is free. Follow this link to join.

Stocks: What to Make of the Day-Trading Frenzy

By Elliott Wave International

Many stock market investors believe that prices have already bottomed. Numerous banks, brokers and financial firms have issued statements saying as much.

Indeed, the May Elliott Wave Theorist, a monthly publication which has offered analysis of financial and social trends since 1979, noted:

On April 28, Bloomberg interviewed four money managers to answer the question of "Where to Invest $1 Million Right Now." Cash was not mentioned.

All these professional financial observers might be right in their assessment that the bottom is in for stocks.

Then again, the stock market rise since the March 23 low might be a bear-market rally.

If so, it certainly has "done its job," meaning, as one of our global analysts put it in Elliott Wave International's May Global Market Perspective (a monthly publication which covers 40+ worldwide markets):

The job of [the first, big bear-market] rally is to recreate the optimism that existed at the previous highs.

One particular sentiment that the rally has "recreated" is known by the acronym FOMO, which stands for the "fear of missing out."

A little background: Toward the end of 2019, the FOMO sentiment was prevalent. Indeed, our December 2019 Elliott Wave Financial Forecast (a monthly, U.S.-focused publication which covers stocks, bonds, gold, silver, the U.S. dollar, the economy and more) showed this chart and said:

Last week, the percentage of bulls polled in Investors Intelligence Advisors' Survey rose to 58.1, a new 13-month extreme. ... Last month we talked about the return of FOMO, the fear of missing out on stock gains; its last major outbreak occurred as stocks approached their January 2018 highs. In November, FOMO became far more entrenched. One Bloomberg commentator called it "the age-old fear of missing out" and stated, "The end of the year is coming, when investment managers will be judged on their performance. Those who are behind have an incentive to clamber into the market now, while there is still time." In our experience, "to clamber" is generally not a sound investment strategy.

Day trading - it's back.

As you'll probably recall, day trading became so popular during the late 1990s that some market participants were selling their homes to raise the funds to participate.

It didn't end well. After peaking in March 2000, the NASDAQ went on to lose 78% of its value.

Yet, even after the dot.com bust, day trading never went away. There was a marked resurgence in the months leading up to the 2007 stock market top. But, even then, day trading activity was not as intense as it was around the time of the dot.com bubble.

However, the wild speculation that was taking place around the time of the February 2020 top did call to mind the 1990s.

The March Elliott Wave Financial Forecast, a monthly publication which covers major U.S. financial markets, the economy and cultural trends, showed this chart and said:

The middle graph in this chart shows that investors' amazing willingness to bet on stocks with borrowed money lasted right through the top of the bull market. … The bottom graph shows when SentimenTrader.com's Options Speculation Index jumped to 1.5, its highest total in 20 years. That index divides the total number of bullish transactions (call buying and put selling) by the total number of bearish transactions (put buying and call selling). …

For anyone who wondered about where the small day traders who made the 1990s so wild went, meet the 2020 version.

Did the February / March market meltdown make the day traders go away?

Hardly.

Here's a May 22 excerpt from Barron's:

Day Trading Has Replaced Sports Betting as America's Pastime.

Day trading among individual investors has taken off.

A full-blown retail mania has taken hold in buying and selling small lots of stocks and options. … Many Americans used their coronavirus stimulus checks to trade stocks.

So, no, day traders are as hopeful as ever.

Even a market meltdown that saw the S&P 500 drop nearly 35% in just a month or so was not enough to scare them off.

This speaks to the extreme level of optimism that is now in play and correlates with the stock market's Elliott wave pattern.

As the book, Elliott Wave Principle: Key to Market Behavior, notes:

The progression of mass emotions from pessimism to optimism and back again tends to follow a similar path each time around, producing similar circumstances at corresponding points in the wave structure.

Learn more about the Wave Principle by reading the entire online version of Elliott Wave Principle: Key to Market Behavior.

You can gain instant access, 100% free.

All that's required is a free Club EWI membership.

Simply follow this link to get started: Elliott Wave Principle: Key to Market Behavior, free access.

This article was syndicated by Elliott Wave International and was originally published under the headline Stocks: What to Make of the Day-Trading Frenzy. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Why Bear-Market Rallies Are So Tricky

By Elliott Wave International

Many stock market investors believe that prices have already bottomed. Numerous banks, brokers and financial firms have issued statements saying as much.

Indeed, the May Elliott Wave Theorist, a monthly publication which has offered analysis of financial and social trends since 1979, noted:

On April 28, Bloomberg interviewed four money managers to answer the question of "Where to Invest $1 Million Right Now." Cash was not mentioned.

All these professional financial observers might be right in their assessment that the bottom is in for stocks.

Then again, the stock market rise since the March 23 low might be a bear-market rally.

If so, it certainly has "done its job," meaning, as one of our global analysts put it in Elliott Wave International's May Global Market Perspective (a monthly publication which covers 40+ worldwide markets):

The job of [the first, big bear-market] rally is to recreate the optimism that existed at the previous highs.

One particular sentiment that the rally has "recreated" is known by the acronym FOMO, which stands for the "fear of missing out."

A little background: Toward the end of 2019, the FOMO sentiment was prevalent. Indeed, our December 2019 Elliott Wave Financial Forecast (a monthly, U.S.-focused publication which covers stocks, bonds, gold, silver, the U.S. dollar, the economy and more) showed this chart and said:

Last week, the percentage of bulls polled in Investors Intelligence Advisors' Survey rose to 58.1, a new 13-month extreme. ... Last month we talked about the return of FOMO, the fear of missing out on stock gains; its last major outbreak occurred as stocks approached their January 2018 highs. In November, FOMO became far more entrenched. One Bloomberg commentator called it "the age-old fear of missing out" and stated, "The end of the year is coming, when investment managers will be judged on their performance. Those who are behind have an incentive to clamber into the market now, while there is still time." In our experience, "to clamber" is generally not a sound investment strategy.

As you know, it wasn't long thereafter that the stock market topped. The major price moves downward were historic.

Even so, the "fear of missing out" sentiment has returned -- again.

Here's an April 7 Bloomberg headline:

FOMO Overwhelms Stock Traders Who Have Begun Ignoring the Risks

Our May Elliott Wave Financial Forecast provides more insight:

According to Google News, the number of articles referencing FOMO and "stock market" increased from 227 in December 2019 to 244 in February 2020, right through the peak in the market. In March, the market's decline was well established, still the FOMO news count rose to 267.

So, yes, the rally has indeed "recreated" the prior optimism. One might even argue that the level of optimism is now even higher.

So, should investors take the stance that the bottom is in - or, proceed with extreme caution? 

Knowledge of the stock market's Elliott wave pattern will help you to answer that question.

As the Wall Street classic book, Elliott Wave Principle: Key to Market Behavior, by Frost & Prechter, notes:

The primary value of the Wave Principle is that it provides a context for market analysis. This context provides both a basis for disciplined thinking and a perspective on the market's general position and outlook.

You can read the entire, online version of Elliott Wave Principle: Key to Market Behavior, free!

You only need a Club EWI membership, which is also free. Club EWI is the world's largest educational Elliott wave community and allows you to get Elliott wave insights on investing and trading, the economy and social trends that you will not find anywhere else.

This link gets you started: Elliott Wave Principle: Key to Market Behavior, 100% free.

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This article was syndicated by Elliott Wave International and was originally published under the headline Why Bear-Market Rallies Are So Tricky. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

An Eye-Opening Perspective: Emerging Markets and Epidemics

By Elliott Wave International

People across the entire planet remain very much aware of the COVID-19 health threat.
The global disruption associated with the pandemic far surpasses other major health scares in modern history.
Even so, you may recall 2009 news articles similar to this one from the New York Times (June 11, 2009):

It came as no surprise [on June 11, 2009] when the World Health Organization declares that the swine flu outbreak had become a pandemic.

The disease has reached 74 countries ... .

And, going further back in time, the World Health Organization provided this July 5, 2003 update on the Severe Acute Respiratory Syndrome, known as SARS:

To date, 8439 people have been affected, and 812 have died from SARS.

The reason for briefly reviewing the swine flu and SARS is to point out that, as surprising as it may be, both outbreaks marked not the start, but the end of a downtrend in emerging markets stocks.
That's a big reason why, amid the COVID-19 scare, Elliott Wave International's April 2020 Global Market Perspective, a monthly publication which covers 40+ worldwide financial markets, showed this chart and said:

The dramatic drop has created an enormous [bullish] opportunity in the form of a completed contracting triangle pattern in emerging markets overall, as shown by the Vanguard FTSE Emerging Markets ETF, which is the largest emerging markets ETF by market capitalization.

The current, May Global Market Perspective follows up with this chart of the MSCI Emerging Markets Index. The last quarterly bar shows the substantial jump in prices since the March lows. Our global analyst remarked:

That this [price rise] has begun amid the COVID-19 pandemic only adds to the evidence supporting it: Asian-Pacific and emerging markets also began bull markets amid the SARS epidemic of 2003 and the Swine Flu pandemic of 2009, as the chart shows.

Of course, COVID-19 and past outbreaks didn't "cause" stock prices to climb. The point -- as our Global Market Perspective has said -- is that epidemics tend to occur at the end of major sell-offs.
"Tend to" is the key phrase here, of course. There are no guarantees in financial markets. Besides, this outbreak is a full-blown pandemic with social and economic consequences that have already far surpassed anything we saw in 2003 or 2009.
Having said that, emerging markets did rebound, which is something Global Market Perspective subscribers were prepared for, and it's worth noting. What happens next depends on the Elliott wave patterns in market psychology, which our global analysts are tracking in emerging markets (and developed ones) right now.
You can get free access to analysis from our global market experts in "5 Global Insights You Need to Watch," which is a short, 5-video series (plus, two quick reads).
You get our latest forecasts for cryptocurrencies, crude oil, interest rates, deflation and the future of the European Union -- all in just 13 minutes.
The 5 videos and 2 excerpts are straight from the Global Market Perspective -- so yes, this is premium, subscriber-level.
All that's required to access "5 Global Insights You Need to Watch" is a free, Club EWI membership.

Why This Wave is Usually a Market Downturn's Most Wicked

The progression of mass emotions in financial markets "tends to follow a similar path each time around"

By Elliott Wave International

The Wave Principle's basic pattern includes five waves in the direction of the larger trend, followed by three corrective waves.
In a bull market, the pattern is five up, followed by three down. In a bear market, the pattern unfolds in reverse: the five waves trend downward and the correction trends upward.

Each of these waves sports its own characteristics.
As the Wall Street classic book, Elliott Wave Principle: Key to Market Behavior, by Frost & Prechter, says:

The personality of each wave in the Elliott sequence is an integral part of the reflection of the mass psychology it embodies. The progression of mass emotions from pessimism to optimism and back again tends to follow a similar path each time around.

For example, strong price advances on high volume typically happen during wave 3 in a bull market. Of course, in a bear market, the strong price action is downward.
Returning to Elliott Wave Principle:

Third waves usually generate the greatest volume and price movement and are most often the extended wave in a series.

Let's review an instance of a third wave in a downturn from recent financial history.
Here's a chart and commentary from Elliott Wave International's Aug. 21, 2015 U.S. Short Term Update:

This week's sharp decline is clearly a third wave. It sports a steep slope with strong downside breadth and volume.

During the next trading session (August 24, 2015), the Dow fell nearly 1,100 points at the open.
As you might imagine, it would be highly helpful to learn how to anticipate third waves so one can prepare.
Indeed, Elliott Wave International has just made the 1-hour course, The Wave Principle Applied, free through May 15 for free Club EWI members. Club EWI membership allows you to get Elliott wave insights on investing and trading, the economy and social trends that you will not find anywhere else.
The Wave Principle Applied normally sells for $99, so you are encouraged to take advantage of this limited-time offer to access the course for free.
As the Wall Street classic book, Elliott Wave Principle: Key to Market Behavior, by Frost & Prechter says:

Without Elliott, there appear to be an infinite number of possibilities for market action. What the Wave Principle provides is a means of first limiting the possibilities and then ordering the relative probabilities of possible future market paths. Elliott's highly specific rules reduce the number of valid alternatives to a minimum.

Get started with The Wave Principle Applied.

This article was syndicated by Elliott Wave International and was originally published under the headline Why This Wave is Usually a Market Downturn's Most Wicked. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Why Financial Trouble Brews on the "Home" Front

By Elliott Wave International

The world has been hearing a lot about "homes" in recent months, as in -- "stay there" to help halt the spread of COVID-19.
At the same time, the sales of those homes in the U.S. have seen a significant slowdown.
No doubt about it, the coronavirus has played a big role. Yet, a notable divergence was taking shape in the housing market long before the current pandemic.
Financial history shows that it's happened before.
Around the time of the prior housing bubble peak, the January 2006 Elliott Wave Financial Forecast, which is an Elliott Wave International monthly publication that mainly focuses on U.S. markets, the economy and cultural trends, noted:

Home sales are falling across the board now, but "virtually no investors expect sudden burst of housing bubble," says the headline of a UBS/Gallup Poll of investor attitudes: "Just 1% of all investors expect housing prices next year to exhibit a rapid decline." This sentiment is bearish for real estate prices.

Indeed, U.S. housing prices topped later in 2006. Lower home prices followed slowing sales.
Fast forward to this chart and commentary from the May 2020 Elliott Wave Financial Forecast:

The top graph on the chart shows the median price paid for houses sold in the U.S. ... In addition to the terminal five-wave form of the rise, a key to the forecast is seen on the bottom graph. It shows the dramatic divergence in home sales, which retraced just 45% of the 2005-2010 decline.

Individual homeowners would not be the only group hurt if real estate prices fell. Also be aware of this notable factoid and comment from the August 2019 Elliott Wave Theorist:

Since 2012, private equity firms have been buying an average of 10% of the annual inventory of properties for sale in the U.S. They now own huge portfolios of homes worth hundreds of billions of dollars.

You've just seen the Elliott wave count of U.S. median home sale prices.
Other financial markets are also at crucial junctures, so this is an ideal time to learn how to apply the Elliott wave method yourself.
Yes, the learning process does require work, but it's worth it.
As Elliott Wave Principle: Key to Market Behavior states:

All one really needs to know at the time is whether to be long, short or out, a decision that can sometimes be made with a swift glance at a chart and other times only after painstaking work.

If you're ready to learn, tap into the insights of The Wave Principle Applied, which is a 1-hour course that you can access for free through May 15 by joining Club EWI (membership is also free).
Keep in mind that Elliott Wave International normally sells this course for $99, so take advantage of this limited-time opportunity to learn how to spot Elliott wave patterns on chart patterns of financial markets -- 100% free.
Here's the link that gets you started: The Wave Principle Applied.

Forecasting Crude Oil: Since 1998, This Method Has Been the Undefeated Champion

The battle between Elliott waves and supply/demand forecasting approach continues

By Elliott Wave International

In case you just landed on Earth via Martian spaceship, 2020 has seen the biggest crash in oil prices ever.
This chart captures crude's three-month, 80%-plus nosedive to 3-decade lows. (Price data as of May 1, 2020 and does not reflect the unprecedented April 20 plunge into negative territory at -$40.32. Yes, minus $40.32).

Ask any economist with a few post-nominal letters what caused oil's crash, and they wouldn't think twice about the answer; namely, the largest supply surplus in modern history caused by the coronavirus-travel bans and subsequent contraction in fuel requirements. Says these headlines:

• "Crude Oil Prices Slammed Again on Supply Glut" (April 22 Daily FX)
• "Nowhere to Go: US oil prices fall back below zero as traders face supply glut." (Apr. 21 aljazeera.com)
• "Oil Sides with Rising Glut Spooking Investors" (Apr. 27 Wall Street Journal)

As a March 12 CNN Business surmised: "It's a nightmare scenario for the oil market."
Indeed, the news events pertaining to crude oil and the global economy are nightmarish. However, the idea that oil's crash was a direct result of the supply glut is erroneous. Case in point: This chart of the week-over-week supply of US crude oil stocks shows that the historic glut we see today didn't occur until months AFTER the collapse in oil prices was well underway. (Source: ycharts)

In fact, predicting oil's 2020 crash was possible only by focusing on a leading indicator, the Elliott wave pattern underway on oil's price chart.
Here, we go back to beginning of 2020, when oil prices were enjoying a 35% rally to 9-month highs.
Then, mainstream energy analysts were looking higher amidst a perfect bullish storm of escalating tensions between the U.S. and major oil producers in the Middle East (see: Soleimani assassination, retaliatory missile strike on U.S. military bases in Iraq, and the Strait of Hormuz closure)

-- AND --

would you believe, a supply... deficit.
Yes, as recently as January all these factors had the pundits "preparing" for oil to be "sent back to $100" (Jan. 8 CNBC). See:

• "JP Morgan Raises 2020 Oil Price Outlook" (Dec. 17 oilprice.com)
• "Falling Supplies Support Crude Oil Rally" (Jan. 8 Seeking Alpha)
• "Oil Surges 35% in 2019 and Hedge Funds are Betting on More" (Dec. 31 CNBC)

The largest oil crash in history occurred -- instead.
That leaves standing the forecasting model of Elliott wave analysis. It started preparing investors for a massive turn in oil prices as early as December 16, 2019 -- before the first coronavirus case was documented on December 31.
Here, we recover these forecasts from the Elliott wave vault:

December 16, 2019, Elliott Wave International's Short Term Update cited the debut of the world's largest, $2 trillion IPO, Saudi Arabia's natural petroleum and natural gas company Aramco as proof that oil bullishness had reached a dangerous peak, warning the "onset of the next far more serious decline in the oil market."

January 17, 2020 Elliott Wave International's Monthly Commodity Junctures called for oil prices to be slashed in half from current levels and said:

"The big narrative when you start looking at the weekly and monthly crude oil charts is -- any strength we see is going to fail."

February 7 Elliott Wave International's Daily Commodity Junctures showed this bearish projection and confirmed oil's trend was now down: "The high of the year is in place in crude oil and we will fall to $33 a barrel -- at minimum."

March 6 Elliott Wave International's Energy Pro Service: "The headlines are likely to cite the lack of a coordinated OPEC production cut as the driver for today's 10% freefall... but it's right in line with our forecast for the downward acceleration in wave 3 of (3). The market should trend on down in an impulsive manner."

March 9 Elliott Wave International's Short Term Update: "Crude oil is on its way to [its lowest level since 1999]."

Predicting negative $40 price per barrel for WTI wasn't possible. It happened in part because CME allowed the contract to be priced below zero to stimulate demand.
The point is: Across several different publications, different Elliott Wave International's analysts were able to maintain a bearish position and anticipate a massive sell-off in crude by using one single forecasting model: Elliott waves analysis.
In fact, Elliott Wave International's President Robert Prechter addressed this very topic at the 2016 Social Mood Conference as part of his keynote presentation. There, Bob discussed the enduring "battle between Elliott waves and the supply/demand theorists" for the title of successful oil forecasts.
There, Bob engages his audience in a 30-minutes slide show of oil charts, newspaper clippings, Elliott wave analysis, and historic data that leads to one dramatic conclusion:

"In truth, the supply/demand model failed to predict any of the dramatic turns in oil prices since 1998."

Remember the 2008 "Peak Oil" climate? That's when a supposed record supply deficit was going to send oil prices to the moon. Instead, Bob Prechter published this bearish warning in his June 2008 Elliott Wave Theorist:

"One of the greatest commodity tops of all time is due very soon," -- a "pretty bold call in the middle of a freight train going up when the world is running out of oil."

The crash from $147 to $32 a barrel in the following five months of 2008 shocked mainstream analysts.
In his presentation, Prechter shows that since 1998, the supply/demand model failed while the Elliott wave model succeeded to forecast 8 major turning points in oil prices. In his words:

"Why do supply/demand theorists fully embrace the trend at the perfectly wrong time, time and again? They do it because their model doesn't work."

And, as the oil crash of 2020 proves, the Elliott wave model still works.
The lessons from Bob Prechter's 2016 presentation are as relevant today as ever. Fortunately, if you weren't there to see it in person, our friends at Elliott Wave International are re-releasing the complete, 30-minute live video footage -- FREE -- to all free Club EWI members.
Free, watch Robert Prechter's timeless 30-minute video right now.

Gold and Silver: Pay Attention to This Noteworthy Record High

Here's what usually occurs in related financial markets when "big changes in social mood are afoot"

By Elliott Wave International

Related financial markets tend to move together. For example, gold and silver.
Or, consider stocks. When the Dow Industrials are up on a given trading day, the NASDAQ is usually in the green too. The same applies when the Dow is down. Other major stock indexes tend to close in negative territory as well.
However, when a trend is near exhaustion -- whether bullish or bearish -- "non-confirmations" often happen. A non-confirmation occurs when one market makes a new high (or low), but a related market does not.
Let's stick with the example of stocks as we look at this chart and commentary from Elliott Wave International's November 2019 Global Market Perspective:

Notice that while the FTSE 100 is off 6% since its May 2018 high, the Small-Cap index and the AIM 100 are down 9% and 23%, respectively. These non-confirmations are important, because markets almost always splinter when big changes in social mood are afoot. ... It's only a matter of time before the broad indexes abandon the bull-market party.

As we all know, abandon it they did -- in a very dramatic way.
Now, let's look at what's going on with gold and silver.
Here's a chart and commentary from EWI's April 27, 2020 U.S. Short Term Update:

Gold is massively overvalued relative to physical commodities and the ratio of gold-to-silver recently jumped to a record high. There remains a large non-confirmation between gold and silver.

Even so, here's an April 21 headline (CNBC):

Bank of America raises gold forecast by a whopping $1,000 to $3,000 because of zero rates

Well, this major bank's outlook for gold might turn out to be correct.
On the other hand, it's obvious -- as you've just seen -- that the gold and silver markets are significantly splintered.
Plus, the Elliott wave model is also providing clues about the next big moves in the gold and silver markets.
And, speaking of Elliott wave analysis, EWI has just made available a 1-hour course titled: The Wave Principle Applied. You can access this valuable resource 100% free through May 15, 2020.
How?
Simply join Club EWI. Membership is also free.
When you avail yourself of The Wave Principle Applied, you will learn how to spot Elliott wave patterns on a price chart. Plus, you'll acquire trading insights.
As Frost & Prechter's Elliott Wave Principle: Key to Market Behavior noted:

After you have acquired an Elliott "touch," it will be forever with you, just as a child who learns to ride a bicycle never forgets. Thereafter, catching a turn becomes a fairly common experience and not really too difficult. Furthermore, by giving you a feeling of confidence as to where you are in the progress of the market, a knowledge of Elliott can prepare you psychologically for the fluctuating nature of price movement and free you from sharing the widely practiced analytical error of forever projecting today's trends linearly into the future. Most important, the Wave Principle often indicates in advance the relative magnitude of the next period of market progress or regress.

Simply follow the link for your free membership into Club EWI, and then you can access The Wave Principle Applied -- 100% free -- through May 15 (EWI normally sells the course for $99).

This article was syndicated by Elliott Wave International and was originally published under the headline Gold and Silver: Pay Attention to This Noteworthy Record High. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.