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Tuesday, September 8, 2020

Elliott Wave Intraday ~ 8 September 2020

Every index made a lower low today. Wilshire 5000/SPX, Industrials, NASDAQ Composite/NDX. That at least implies they are all in agreement.  The Composite was less than a point lower but it made the effort and got lower than Friday.  It also proved that Friday's furious rally was a "three" wave corrective.

Don't really have a good count we'll have to see what develops further. They all printed huge open gaps down so its a huge trading target to try and close the gaps.
The top "alternate" count is that today was a price low from here on out. The "Virgin Space" is still intact.  The alternate count implies a 6-8 week back and forth rally and selling in a new trading range created by the selloffs of last Thursday, Friday and a confirmation of the lows today.

This implies a massive and final "handoff" to retail traders, mom & pops who will be lured back in in their retirement 401K's and what not and all institutional investors forced to keep up with the market.  Basically everyone will be "back in" if they haven't been by now. And the insiders will be selling furiously as they did in August.

Then maybe it pops on election night and crashes. Just guessing.  If we are in the latter stages of Minor 3, then the rally is getting long in the tooth. 

This is the beauty of wave counts. Its only September 8th, but if this count is "correct" than logic tells us prices really have no room to go lower. Any overlap with the early June peaks absolutely invalidates this count. 


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