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Friday, June 7, 2013

Elliott Wave Update ~ 7 June 2013

Today's aggressive move up totally blew up our squiggle wave count from the recent Stock market high.  Our proposed impulse wave from the SPX 1687 high is not working.   I just don't have a good squiggle count at the moment other than the proposed falling wedge leading diagonal presented in the second chart below.

Yesterday's low stayed within the narrow up channel on the chart below, so new highs above 1687 certainly cannot be ruled out. Yet my gut feeling is that 1687 will not be taken out.
The only thing I can say, is that markets sometimes like to do "doubletops" at a major high.  I'm certainly prepared for this possibility.

The best bearish count at this stage has to be a leading diagonal falling wedge. Hence the violent rebound in prices back up. The rebound would likely be deep (66 - 81% of wave [i] down). A deep wave [ii] retrace is the guideline for leading diagonals. Then after the rebound dissipates and loses strength, back down the markets go in bigger wave [iii].

This market is not going to make it easy on being a bear.  A deep, quick retrace will shake out the bears yet again.

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