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Friday, July 31, 2009

Elliott Wave Update ~ 31 July

There a lots of ways to count the moves from the Thursday high of 996. My squiggle chart shows just one possible way. I do like it best though. I am putting myself on the line by charting this squiggle count because it implies that Monday could be a breakaway gap down opening that might not look back or perhaps a quick pump (fulfilling a small subwave up for black ii) and massive dump. So again, buyer beware and do your own diligence when it comes to interpreting the market moves!

The leading diagonal I charted often happens off the top of significant market tops. It forms because there are still laggard bulls rushing in at the end. Yet the subwaves of the leading diagonal are clearly impulsive down. Today's lazy subwaves up is also more late-comers to the party. Its the end of the month and lately the "new month selloff" has not worked. However the market likes to alternate so we may now be due for a start of the month selloff.

But again, the important part is that the market is starting to clearly sport some clean 5 wave structures down and that I think is cluing us in on the change in direction. It hasn't done this since the 869 low so its a bit of evidence that the corrective Minor B wave has started. Monday should give confirmation. If not, well sheesh....bulltards hehe!


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