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Wednesday, April 15, 2015

Elliott Wave Update ~ 15 April 2015

An important event occurred today. A new intraday high on our Wilshire5000 ending diagonal count. In other words the minimal requirements for a valid ending diagonal wedge were met today.

On February 25th, the Wilshire peaked at 22,369.06 intraday marking the top of [a] of 3 of (5)
On March 23rd, the Wilshire topped at 22,389.10 marking the top of wave [c] of 3 of (5).
Today on April 15th the Wilshire made a minimum new high above wave 3 by peaking at 22,391.88.

So we have a valid wedge count in place.  Its also a virtual, nearly perfect, "triple top" spread over a 7 week period.
I'll end this post by showing a chart published tonight from Elliott Wave International (click my endorsement ads to the left so I get a small commission if you decide to buy one of their excellent products) of the persistent level of historic bullishness displayed by Investors Intelligence survey.

Can bullishness go higher and persist longer? Of course. But when aligned with a wave count of a potential deadly ending diagonal bearish wedge and a 7 week triple top formation in one of the broadest base market index (Wilshire5000), its a decent bet to go on the short side of things here.

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