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Wednesday, November 18, 2009

Elliott Wave Update ~ 18 Nov

Nothing much has changed from yesterday. It appears a triangle has formed in a sideways consolidation move above 1100. The triangle may be finished or tomorrow may be an "e" wave down presenting a false break of the rising trendline and then hard reversal to the upside to finish the final rise on Minute [v]

A triangle means this should be the last actionary move to the upside on this rise from 1029 SPX.

I know a lot of people will say "but the triangle is so obvious it won't work". Well that may be true, but in interpreting waves we go with what we got. And right now a pretty decent contracting triangle is forming above 1102.

Notice the Fib markers I place on the chart. See how if a new high forms that the 38% retrace sits under the pivot point wave [iv] low and the 61% retrace sits on the wave [i] high. This is an ideal projection. So any up move tomorrow making a new high may be muted (say 1118 SPX) and then I do expect to see a reversal yet again down.

I'll add more charts later.
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