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Monday, January 27, 2014

Elliott Wave Update ~ 27 January 2014

The market bounced today at the place where horizontal support meets trendline support.  The market seems to recognize that it is at a critical juncture. To lose the long-standing up Intermediate wave lower channel line would be technically bearish.
Squiggle count has options. We'll just have to see how the market reacts tomorrow.
The weekly chart. Prices are back inside the cycle-wave upper channel line (blue).  Prices managed to bounce off an up-sloping technical support line (black) today.  And prices have reached the lower Intermediate channel line (red).

One can surmise that technically speaking, if prices lose the support of the black support line and the red lower intermediate channel line, then there is an excellent chance they may work their way lower all the way to the lower green cycle wave channel line.

In my opinion, it would also be a technically "ripe" area for such a thing as an oversold "flash crash". Not predicting that of course just saying it seems a good spot (technically speaking) if one were to happen. So keep a close eye on price action over the next few days.
VIX still outside its Bollinger Bands.

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