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Tuesday, May 26, 2009

Elliott Wave Update ~ 26 May

Upside Surprise indeed. How about I slap up a chart, threw up some degree markers and call it an update? hehe.

Rather than post a detailed chart on where they market may or may not go, I'd rather talk about a few details instead. 1) Advance/decline volume was a paltry .26 in the opening moments. Then a hard reversal that broke a ton of short stops and massive short covering. Gap at 900-903 was closed. Market got bogged at 912 resistance or so. The futures were lolly-gagging since Sunday-Tuesday morning and MM's seen a chance to smack it the to the upside. Thus a stampede to higher prices.

The whole pattern since the initial rise to 929 seems to be triangulating in some sort of fashion.
The 60 minute chart shows one potential pattern.
Triangle waves or just X waves in general are unpredictable in the short term to a degree. But stepping back and looking at the big picture, the market is consolidating above breakout resistance and holding key support at 878. The 200DMA drops lower and lower. Stuck between the 2 for now.
I suppose 878 will break lower only when everyone least expects it. Or it won't break at all. I make no assumptions other than the market will do what it will do.


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