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Wednesday, December 9, 2009

Elliott Wave Update ~ 9 December (Updated 4:36pm)

Threw in a dollar chart of UUP. 5 very nice waves up. Nothing too fancy just straight-up 5 waves. Very promising. A deeper wave (ii) retrace may correspond with some further upside market prices as shown in my NASDAQ chart below.

Lots of overlapping-type waves occurring in most every index. However there continues to be lower lows and looking at the NASDAQ, its sure works very nice as a leading diagonal. So that's what I will count it as until and unless it proves otherwise. The bonus is that it works on the e-minis, Wilshire, SPX and DOW. And that is good synergy for such a pattern.

EWI often tells us when the wave counts are unclear we just have to be patient until something clear arises again.

Had all the indexes not made lower lows under yesterday's lows, I would not have this Leading Diagonal as the #1 primary pattern. So yes, when certain lows take place, it heeds to pay attention to them even if they seem not important overall. 2 lower lows on all the major indexes is a wave clue in my opinion.

Whats nice about the leading diagonal is that waves ii and iv are near textbook zigzags which is a "rule" for LD's. Also the up moves today also appears to be zigzaggy. At least so far.

Is this the market's intention? A slow choppy trudge down for a wave (i) and eventually it will break asunder lower in a thunder bear move? Well, all we can do is have patience and apply the best overall count to what is in front of us as it is. And at the moment, I think this LD looks pretty good.

They can retrace deep often 76% so a bullish up move will catch a lot of people off guard both ways if it turns down again.
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