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Monday, February 29, 2016

Elliott Wave Update ~ 29 February 2016

The Head and Shoulders neckline continues to be resistance.
The wave count has traced enough counter-trend waves to be considered finished. However, it is never that easy.
One thing though that is exciting is that the market is potentially coming up on a "third of a third" wave down. We have had these situations before since the 2009 low but obviously it hasn't panned out and the market always went on to new highs. Well here we are again.  The wave count allows for prices to continue to correct upwards in both price and time, but the main point here is that we may be close to an all-out market collapse which a 3rd of a 3rd calls for.
Monthly candle pattern is a very long-legged - albeit slightly losing- doji candle pattern. Bulls would interpret this as that the bears beat prices down but were thwarted. Bears would interpret this as the bulls "gave it their all" but cannot overcome the oncoming bear. We shall see.

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