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Bellwethers

Bellwethers

Courtesy of Allan, with my comments (bold) on his interpretation of his charts. - Ilene  

A bellwether is any entity in a given arena that serves to create or influence trends or to presage future happenings. 

The term is derived from the Middle English bellewether and refers to the practice of placing a bell around the neck of a castrated ram (a wether) leading its flock of sheep.  The movements of the flock could be noted by hearing the bell before the flock was in sight.

This is Allan's Elliott Wave Count on the Google chart: Interpretation: GOOG is treading water, till it sinks to new lows, in Allan's opinion, based on his Elliott Wave analysis. Wave count 4 was up, and now these charts indicate that to fulfill EW expectations, a wave 5 down is on the way.  

 
AMZN: same pattern as Google. 
 
 
GS--going down the path to number 5 too, not shown where it might end. 
 

 

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For more on Elliott Wave Theory, check out EWI's free TA guide: