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Wednesday, May 30, 2012

Elliott Wave Update ~ 30 May 2012 [Update 7PM]

Update 7PM: Only thing to really say about Gold is that it has tested major support 5 times now.  Most market technicians would see this as a serious concern as prices are "working" on breaking support.  Like a hammer, eventually it can break. And if there are a lot of stops at $1500ish or below, then prices can accelerate.
The primary count is that the SPX will move below 1291.98  - our current wave [iii] low - prior to a move above (if any) 1357.38 - our current wave [i] price low.   This is the basic premise of forming at least a large 5 wave impulse pattern down from the top. As EWI likes to say, "greater bearish potential exists."
Why does greater bearish potential exist? Because selling pressure picked up today.  But overall volume is still less than the previous week so its a wash until we get some follow through to the downside.

Again 1292 - 1296 is a very important major support area (which was the major resistance area prior). As bearish as today was, prices are still actually well above that key pivot.
Wilshire 60 minute chart. Again, if this is still Minute [iv], then prices are likely to jerk both bulls and bears around for a bit longer before having the bear wave [v] win out.
E-mini chart seems a mature (a)-(b)-(c) with (c) wave as an ending diagonal which is again a bearish chart pattern.

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