Custom Search

Monday, August 9, 2010

Elliott Wave Update ~ 9 August [Update 6:10PM]

[Update 6:10PM: If gold has topped and this is a wave 2 retrace, then the blue box area would be the target zone.]
New recovery highs which is not unexpected which to me confirms a 7 wave corrective pattern from the 1010 SPX July low..  If the market can gap over 1131 resistance, then a run into the 1140's seems probable where there exists a good amount of wave relationships and is next resistance.  For the DJIA, jumping over 10720 could mean a run toward its 78.6% retrace which is a deep retrace and would support the idea of the DJIA being a leading diagonal.

Keeping things in context the SPX, despite a constant upward rally since early July, has only retraced some 57% still shy of the 61.8% Fib at 1140.

There is enough of a wave pattern to suggest the Minor 2 high is very close.  Will it have one glorious blow off move tomorrow in response to the Fed?  We'll soon find out.
Green VIX, green market.
blog comments powered by Disqus