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Tuesday, August 5, 2014

Elliott Wave Update ~ 5 August 2014

We have 5 waves down from the SPX peak. Is it the start of a major wave down or merely wave c of a 3-3-5 expanded flat of wave (iv) of [v] of 5 as is labeled in the SPX hourly chart below? Well, we do have a positive divergence suggesting a bounce.  Will the bounce be merely a retrace of the decline from peak or will there be new market highs in a final wave (v) of [v] of 5  as this blog has been suggesting for many weeks?

Its getting interesting again!
The Wilshire5000's wave structure is damaged. There appears to be a retrace that is just too deep for the count. Ultimately a bearish development over the medium term.

However its still holding major support. But it is this Wilshire chart that makes it somewhat suspect for a final wave up. Yet even so, it has not yet technically violated its wave (i) peak (barely).
Long term trend line. Obviously at major support in both uptrend channel terms and horizontal support. A loss of both could be disastrous for prices. Should be fun either way!

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