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Wednesday, September 24, 2014

Elliott Wave Update ~ 24 September 2014

Robust rally, however by the end of the day the NYSE registered a mere 60% up issues ratio and a 67% up volume ratio. Not exactly a hard reversal internally. So that would be consistent with a wave ii up after all the indexes made 5 wave patterns down from their highs.

Wilshire shows it best.  Is it wave ii - or wave (ii) if you prefer the higher degree markings - and will it trace a bit higher in price before reversing in wave iii - or (iii) down?  I'm too lazy to change the wave degree on the 5 minute chart below. Its probably best as wave (i) down and wave (ii) up.  The 1 minute charts beneath shows the higher wave degrees.
The following 2 charts will show why I often prefer the Wilshire 5000 to make squiggle charts. It simply follows EW rules better that the less broader SPX.

First the SPX. gets a little sloppy on wave v
But the Wilshire counts fairly neatly:
Wilshire 2 hour chart shows that prices felt the lower long-term channel line.
SPX hourly shows the best alternate count is that wave iv was a flat.

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