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Tuesday, May 10, 2011

Elliott Wave Update ~ 10 May 2011

Pretty strong, steady up day via market internals.

Since the count from 1249 to 1370 counts best as only 3 waves, I suspected the market was not done yet at taking a crack at the 1370 high.  But since there were multiple options, we just needed some patience. The larger point being of course that the market was not done yet.

The 2 strongest options were the Minor 4 triangle or the Minor 5 ending diagonal count as I have been showing in the last many updates http://2.bp.blogspot.com/-3DzzNCcrCHE/TchTwUtD4aI/AAAAAAAAJKM/8hpv4Rydl-g/s1600/spxdaily.png

The ED pattern seems to be winning out for now even though I declared thats not the top prospect since Minor 1 appeared to be a leading diagonal.
However there may be other variations in which Minor 5 can accomplish 5 subwaves and still remain within the rules of EW. Here is one such example:
So be on the lookout for the 'ol w-x-y triangle-at-the-end trick.  

Of course the DJIA has no overlap in its Minor 5 for now. And as Prechter says, the Industrials always seems to make the best wave forms. 

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