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Tuesday, April 15, 2014

Elliott Wave Update ~ 15 April 2014

Still holding the channel line. Prices have tried to rapidly advance up and away from this channel line. That means the market likely deems it important.
Consolidating for a further decline or establishing yet another pivot low and continuing the 2 year uptrend? Some sub indexes look pretty sickly so the bears definitely have a case to be made. However we need 5 wave impulse patterns down on some oif the main indexes before we can count the market as going lower in an impulse pattern. Don't see it yet on the INDU, SPX nor Wilshire5000.
Wilshire 5 minute chart shows the conundrum the market is in.  Basing for a move up or consolidating prices for a big lurch lower?  The most bearish count is shown below (series on ones and twos down)
This weekly says it all. If the lower red channel line is broken, then we can say an EW channel has finished and a new structure is probably beginning.. Thats it in a nutshell really. There has been some sort of Elliott Wave Structure in place since the pivot low in June of 2012. One degree or two above that there has been an EW structure since the 2009 low. And that EW structure since the 2009 low still takes the form of a "three", which is corrective by rules of Elliott Wave theory.

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