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Thursday, May 15, 2014

Elliott Wave Update ~ 15 May 2014

Prices have indeed begun to collapse as suggested if the SPX was in an ending diagonal triangle. If this was an ending diagonal - which indicates overall exhaustion of the 2 year uptrend - then even more price collapse should come quickly. But for now major support held for today.

If prices can hold above around 1838 SPX, and then somehow manage to creep up again to another new all-time high, it could be indicative of yet a bigger ending diagonal triangle (as suggested by the upper green line.)

Either way things are getting interesting.  Note the higher volume bar of today's downdraft. Technically speaking that is bearish.
Wilshire weekly.
Swapped the primary and alt counts. We just have to let things work themselves out. The Wilshire diverged from both the SPX and Industrials in a big way on the latest topping efforts of the latter 2.
This is really the first time the overall Wilshire has diverged in this manner since the 2009 low. Every major peak in the 5 year uptrend has shown a remarkable symmetry at least between the Wilshire 5000 and S&P 500. This time there exists a significant negative divergence. Couple this alonmg with waning momentum indicators and the recipe for a major bear move is formidable.

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