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Friday, May 1, 2020

Elliott Wave Update ~ 1 May 2020

One more squiggle down and we would have our first 5 wave structure lower.  Today's breakaway gap would be the "third of a third", or wave iii of (iii) of [i] down. We are looking for [i]'s low.

Then a possible bounce for wave [ii]. I say possible though not required.  Wave (3) should pick up in intensity so any counter bounces may be quickly dispatched.
The lower wedgeline broke and there was a good amount of technical damage inflicted. It was a solid down day internally.  
The weekly candle took the shape of a "gravestone" doji. Prices surged during the week to a high and got beat back down to approximately the same level (they actually finished lower than the start). There is no reason wave (2) should be expected to rally further. Its been a tremendous success as a wave (2). 
The top alternate count is hanging in there although the market would have to rally almost immediately from here for the count to still be in play.  Even if this count was fulfilled, we are only looking at a marginal higher high for Z of (2).
Any more price loss and [b] of Z would likely be too deep to be a valid count.  If wave (3) is in play as we suspect, then this should be quickly eliminated as a count.
Gold is hanging in there too.
All the moving averages were revisited by wave (2) on the monthly.

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