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Monday, December 7, 2009

Elliott Wave Update ~ 7 December

Today's high could have been a subwave (i) of [iii] of C up and today's low subwave (ii) of [iii].

The opposite end is of course that the high is in. This supports the stance that soon a wave (iii) down will occur and take the S&P500 under 1000.

But it may of course wind up being a mixed bag. Some indexes may lurch to new highs and others do not confirm. This would be not unexpected. Or none make new highs. The market seems to know that 1100 is a key level and that if it dips under again, it may lose more than it bargained for.

The count is getting muddied and thats precisely what happened at the March 666 low.

Looking at the SPX 60 minute chart, you can see what appears to be a nice round distributive top going on. With bullishness at an extreme after a record rally, its a good bet to make that this big rounding top is the "strong hands" dumping off to "weak hands". And it won't last forever. The "arc" of the oval/circle may act as resistance if it can challenge it again.
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