Custom Search

Wednesday, December 7, 2011

Elliott Wave Update ~ 7 December 2011 [Update 5PM]

[Update 5PM: The market has entered a small multi-day rectangle pattern. This fits a (b) wave but by no means is a breakout to the upside guaranteed.  Even if it breaks upwards, the measured target of the breakout takes prices exactly to the previous resistance high of 1292 SPX. A squeaker price just higher than 1292 is all that is required to fulfill the second zigzag.

If bears win, it'll keep intact the series of lower highs in this order: 1371 - 1356 - 1292 - and now 1267.  Lower highs define a downtrend.
The sideways price action over the last many days has fit the profile of a sideways (b) wave of a final (a)(b)(c) zigzag [y] of Minor 2.  A nominal price high above 1292 SPX is required under the Minor 2 double zigzag scenario.

SPX hourly shows the overall Minor 2 double zigzag proposal. Prices have been fighting the down trendline. If prices can pop over and capture this line, I suppose they'll run up toward 1292 at least.
SPX 5 shows (b) wave may be complete. We just don't have a confirmation yet.
Still possible to label the Wilshire a triangle:
From the daily, its a clear confluence of 3 resistance zones. 1) horizontal 2) downsloping trendline  3) 200 DMA.  By no means is it guaranteed prices will clear this area to the upside.  A double zigzag count though requires it to be cleared.

One can easily imagine if prices can clear this tight confluence, prices should quickly run toward the 1292-1296 resistance.
blog comments powered by Disqus