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Thursday, April 10, 2014

Elliott Wave Update ~ 10 April 2014

One of the 2 patterns below may likely prove out to be correct.

Bear count. If this is correct, prices are heading south in a hard way soon.
Short term bull count. If this count is correct then prices will hold and manage a new high, even if marginal.
Supporting evidence gives a lot of credence to the bears. Why? the market has been very fragmented and many momentum indicators are flashing a waning long term rally is ending.  In fact the DJIA closing high was still in 2013!
Conclusion:

Even if the Wilshire was to manage a new high, the high would be a [v] of 5 high and the market would be due to turn down anyway.

The really scary part is if the bear count is correct, the market is now only getting started on a potentially powerful subwave (iii) down.  Thats EW logic in a nutshell. We still have a valid potential expanding wave Minute [iv] triangle but market internals don't seem to be validating that. The market is fragmented and internal selling measures are increasing.

In any case things should get exciting.
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