Elliott Wave Case Study: India’s SENSEX
A 2008 wave pattern. An almost nine-fold rally to the 2025 high.
In November 2008, India’s Sensex was a textbook case. EWI identified a wave pattern pointing to a major rally ahead, even as sentiment was deeply negative.
The Sensex went on to rise almost nine-fold to its 2025 high.
The original 2008 analysis
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.
The following excerpt is 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.
Global Market Perspective, November 2008 · Elliott Wave International
What happened next? The Sensex rallied almost nine-fold to its 2025 high, as shown in the updated chart above.
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Shared for educational purposes only. Not financial advice.