By Elliott Wave International
One strength of Elliott wave analysis is its ability to reveal key turning points — before the crowd catches on.
India’s Sensex in 2008 is a textbook case.
During the Great Financial Crisis, Elliott Wave International's Senior Analyst, Mark Galasiewski, identified a wave pattern that pointed to a major rally ahead — even as sentiment was deeply bearish.
Check out this excerpt from the November 2008 issue of EWI's Global Market Perspective:
“Notice how the up-down sequence labeled Intermediate waves (1) and (2) (in the small red box) is a microcosm of the larger up-down sequence from the 2003 low to the present (i.e., waves 1 and 2, in the large black box). In both cases, the wave-two correction retraced approximately 50% of the wave-one advance.
If we have identified this ‘nested fractal’ relationship correctly, it means that Indian stocks are about to begin Primary wave 3 of the bull market that began in 2003.”
What Happened Next: The Sensex rallied almost nine-fold to its 2025 high.
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This article was syndicated by Elliott Wave International and was originally published under the headline Elliott Wave Case Study: India’s SENSEX. 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.
