Emerging Markets & BRIC: Make or break time

The Emerging Market and BRIC ETF's are both at crucial junctures.
EEM: Resting on a trendline after having completed what seems like a Ist and IInd wave down. If the trendline breaks we get a fully formed head and shoulders. The breakdown in 2008 also came from a similar formation.

EEB: This poster boy of the last bull run is sitting at the neckline of a head and shoulder pattern that has taken 4 years to form. In addition it looks like it is already forming a 3 of a larger IIIrd wave.

Considering the precarious position the S&P 500 is in, any sort of macro surprises would be capable of breaking down these markets in a big way!

BSE Sensex short term Elliott Wave

The last post on March 24th showed a head and shoulders pattern. The neckline was breached on 4th April and the test of the neckline seems complete as of today. This post will put that pattern into the context of a wave count. 

Although the market topped at 20203 on Jan 29th in terms of the wave count the market topped on March 11th. As from the chart the market has completed waves I & II and is in the process of forming a wave III down of which 1 & 2 of minor degree also seem complete. A breach of 18175 will confirm that a 3rd wave of III down has indeed started.
In conjunction with the head and shoulders post what we should see here is a move down to 17450-17000.
The count will be invalidated if another up move breaches the 19025 level.

Gold: Where do we go from here?

I put a title to this post and involuntarily just started singing this song from Evita. As i went over the words i figured that this was me back when the oil started cracking in 2008. I assume that gold bulls are feeling the same way today and will find something to take away from this.

Where do we go from here?
This isn't where we intended to be
We had it all, you believed in me
I believed in you

Certainties disappear
What do we do for our dream to survive?
How do we keep all our passions alive,
As we used to do?

Deep in my heart I'm concealing
Things that I'm longing to say
Scared to confess what I'm feeling
Frightened you'll slip away

Back to the TA.

Long term support comes in at 1100-1180 depending on how quickly we get there. 1180 also coincides with the point at which the current move =161.8x (move from September 2011). This is also an area of previous consolidation from the end of 2009- May 2010.
It goes without saying that a lot of chop is also expected at these levels.
Expect a follow up when we get there, if we do..