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Wednesday, October 22, 2014

Elliott Wave Update ~ 22 October 2014

NOTE: I relabeled the wave degrees on the charts to reflect better the likely wave degree due to time and price patterns over the last many weeks. (It can always be adjusted later if need be in the longer term).

The GDOW chart may be the best wave chart at the moment to where prices may head over the coming days and perhaps weeks.(I often cite how well the GDOW traces waves). I will be watching this one closely.

As was mentioned last night, the GDOW bounce was weaker. It also has traced probably the clearest wave pattern since its orthodox peak.

First the weekly chart shows a truncated peak (less than a point!).
The hourly chart reveals a very nice EW pattern to Minor 1 down.  It would be preferable if there was a three wave bounce for Minor 2 up.  That would probably take us right about into the U.S. political elections in early November
The NYSE also traces a good pattern down.  It has retraced deeper above 50% which is of course good wave 2 territory.
The SPX has been the strongest. It has retraced above the 61.8 Fib mark.  Obviously if the GDOW holds up through early November and traces a nice [a][b][c] pattern, the SPX is likely also to do well. The only rule is that wave 2 must finish beneath 2019.26 SPX (peak).

I don't like this short term count, but hey, it has a sort of nice expanding symmetry to it.
The DJIA chart is also interesting. Not quite an official "backtest" of the broken trendline of the ending diagonal wedge just yet. Prices didn't come close enough. Remember, it took a full year to build that wedge. It need only take a 3-4 months to collapse back beneath its start point for it to look right.  It doesn't need to do it in only a week or two!

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