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Friday, June 19, 2009

Elliott Wave Update ~ 19 June

Well, the market did a nice little 3 day retrace back to the previous 4th wave subwave at 928. That's what was called for and it complied with it. The waves look obviously corrective since the 903 low and I cannot find a bullish alternative at this moment.

So....Monday *should* be a decent down day. That's according to the wave structure. I'm not going to try and outguess the wave structure, I'll play it straight here. The TA supports a down move come Monday. Either its the beginning of a C wave or a wave 3. Both can be powerful. However I favor it being a C wave.

The 50/200 crossover I talked about the other night will happen early next week. I suppose the market will drop down and meet both. I show an updated daily of the chart I posted the other night.

So in review, the market will probably head down a bit and visit the 50/200DMA area. What it does when it meets them is anyone's guess. For instance a C wave is sometimes only .618 times the length of A. That would put a down move C wave to 894 using today's high as a B wave. And that would be a break below the 50/200 DMA. Maybe it does that and bounces.
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