Custom Search

Thursday, May 24, 2012

Elliott Wave Update ~ 24 May 2012 [Update 8:56PM]

UPDATE 8:56pm:

<------------Just click on the link to the left (EWI), become a FREE CLUB EWI member (it really is free no hassles), and get access to a lot of free EWI material.  This month they are offering a full issue of Financial Forecast (a monthly newsletter). I highly recommend it for those that are not club EWI members.

DISCLOSURE: I get $3 for signing people up to be a CLUB EWI member if you do it through my links. I then get a small commission if you decide at any time in the future to subscribe to one of their newsletters or other services.  I currently subscribe to 4 services; the monthly Financial Forecast, Elliott Wave Theorist, and The Socionomist; and the 3-times a week Short Term Update.

And I always wait in eager anticipation for each issue. I am a wave junkie of course.

UPDATE 8:22PM: Channeling can get confusing but its pretty simple and helps.  Channels occur at all degrees. Indeed I have shown a Supercycle channel in the past.   Channels help guide the fractals within fractals.

In a perfect Elliott Wave world, channels would be neat and concise. But social mood, although a fractal, is free to deviate. Additionally the effects of inflation can distort nominal prices (for a while). But eventually it all works out.

If Minor 1 was to form in an ideal manner (they never do), here are the various (potential) channels in a nutshell:

The problem is the DJIA and SPX differ greatly in channels at the moment. The DOW lacks a huge base channel for now due to it topping on May 2nd.

Top two competing counts:

1. Minute [iv] of Minor 1 down:

The sideways price action over the last few days looks like a corrective wave four so we will go with it as primary count.
2. Minute [ii] up for the DJIA.

The downchannel has been broken out of a bit and the entire drop of 1000+ points may require a correction. Best count would be Minute [ii] up.

Obviously the counts above are not particularly compatible with each other. So the waves need to shake out some more.
blog comments powered by Disqus