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Monday, January 9, 2012

Elliott Wave Update ~ 9 January 2012

None of the counts and variations have changed today. Its like a broken record.  Could be an ending diagonal count with a higher high somewhere between 1285 - 1300 or 2 had topped and the market is distributing and rolling over.  In both counts the market will be ending wave 2 up and wave 3 down should kick in.

Again, for the umpteenth time, ideally if you have a double zigzag structure, the last zigzag will end higher in price than the first zigzag.  That has already occurred as a minimum on the DJIA but has not been confirmed by the Wilshire5000 and S&P500.

We patiently await to see if that guideline will be true on the SPX.

.At any rate, the price action seems "distributive" in nature.

Tracking Apple, it appears the mess of waves over the last few months has finally sorted itself out a bit better. New All-Time high today. But the wave count is almost complete. Monthly overbought. December was the least monthly volume on Apple since May 2004.  Is there any hedge fund that has not bought Apple yet?
Daily shows On Balance Volume is developing a negative divergence as a result of lower volume, yet higher prices. Earnings date is 24th January which is still a few weeks away.

As Apple goes, so goes the market I suppose.

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