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Wednesday, April 21, 2010

Elliott Wave Update ~ 21 April [Update 10PM]

[Update 10PM: Fianlly, if this (X) triangle is worth a damn, the apex time target is almost upon us either Thursday or Friday latest.]

[Update 9:50PM: GDOW is another index that makes excellent waves. It has double negative divergence on the weekly RSI confirmed by the MACD, and Ultimate Oscillator. It has kissed its 200 MA. It hit the blue box retrace target. All in all, a fine [B] wave or wave [2] rally it can be proud of.]

[Update 9:43 PM: The RUT has made a minimum new high. It is less than 2 points from busting through its top Bollinger Band on the monthly.

Well we had the thrust up open but there were no new highs produced on the major indexes.  No new highs took place (RUT, NDX and BKX did though) and the retrace back looks corrective rather than exhaustive. The retrace down so far looks like a double zigzag. The SPX found support at the previous gap.

As I was saying if this is an ending expanding diagonal, the last wave should take the form of an (a)(b)(c). so today's low may be a (b) wave of [v] of C of (Z) of [2].  Thats the primary count. There is no rule containing how high a price spike (if it comes) has to be.  It is free to spike to just a new squeaker high, or a blowoff peak.
The retrace back has fallen between the 38 and 50% Fibs which is normal for a B wave. Maybe there is more correcting to do, but so far the structure down is overlapping which indicates corrective.
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