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Wednesday, May 18, 2011

Elliott Wave Update ~ 18 May 2011

We can probably rule out the truncated ending for P[2] due to the fact that the market does not look yet to be exhausted. Today's internals were pretty decent although not earth-shattering. But price and waveform matters.

Waveform appears to be a zigzag down from the high.

An interesting chart pattern has to be the ending diagonal triangle. On a larger scale we have wedging action. On a smaller scale we have overlapping expanding possibilities. The combination of both is intriguing.

Wilshire shows the best form.
And another way of looking at the same thing. I don't prefer this as a count because it looks a bit grotesque, however I show it for effect.
The e-minis actually supports this notion of a new high via the potential bullish falling wedge (which can also be drawn a couple of ways) that resulted in a bullish up move (so far) that re-captured support.
And the DJIA painted a bullish engulfing candle that is again edging above the Supercycle channel line

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