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Tuesday, October 28, 2014

Elliott Wave Update ~ 28 October 2014

Update on the breadth chart. Not yet crossed the .618 line.But no longer diverging obviously.  Not a ZBT event, yet it may hold the market up for longer than the bears would like.
The big development today is that a potential "Dow Theory" non-confirmation setup is now on the clock. Transports and Industrials diverging noticeably.
Again, the GDOW chart may provide the best direction for the short/medium term count: Updated charts and some closer squiggles.
If the SPX followed the general pathing potential of the short term GDOW, then it is also looking for the top of wave [a].

Note that wave [b] is looking for a perhaps dramatic 50-60 point SPX pullback.
Obviously the GDOW may point to an [a][b][c] pattern for Minor 2. The SPX would likely follow suit in the same manner.  The Minor 2 on the SPX has already been very deep up.  2000 SPX is again in the cards, but I don't really think the market gives a shit whether or not it tops the previous 2019 intraday high.  That's just my gut reaction at the moment.  

And a 50-60 point SPX pullback would be "normal" for a wave [b] based on 38% Fib marker of the rise since the 1820 low..
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