Custom Search

Tuesday, August 27, 2013

Elliott Wave Update ~ 27 August 2013

Still more variables for our short term count.  The entire move from the top looks good as one big 5 wave move lower which implies a wave [ii] bounce is coming. Problem is, we just had a bounce of some significance.
However, here is the Wilshire5000; the recent bounce was nearly 50% total of the entire decline. That puts it decently into a wave [ii] territory.  If we have marked the top of Minute [ii], then look out below as things could get really ugly and we have already started wave [iii] down.
Tonight's CPCE reading again does not smack of any panic occurring at all!  So overall, this chart supports yet more selling before a temp "bottom" is reached.
There are 3 major channel trend lines to watch.  A break of each would indicate a trend change at the degree of the channel.

From small degree to large we have:

1.) Intermediate wave (C) of Primary [Y] channel. (Green channel)
2.) Primary zigzag wave [Y] of cycle b channel ( Red channel)
3.) Cycle wave b channel (4 year blue channel)

A break of each indicates a trend change at that degree.

Overall the weekly shows prices coming down to the Intermediate wave (C) of [Y] lower channel line. Until this lower line breaks solidly, the Intermediate trend has not yet confirmed to have "changed" from up to down.  However the overall count suggests all the channels will break sooner or later.  In the meantime, they could offer solid bounce support.

Ultimately a break of the Blue cycle wave b channel would indicate that cycle wave c of Supercycle (a) has commenced.

blog comments powered by Disqus