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Monday, January 4, 2021

Elliott Wave Update ~ 4 January 2021

 The primary count is that the "all-time" high is in with the peak at the morning open. 

I've been labeling every squiggle as we go and it seems to be complete.

Today's down move looks like a 5 wave impulse down and so far only a 3 wave corrective back up. Internals were actually quite muted. In past downdrafts the internals were quite more exaggerated.  It was a very orderly selling event. You can't script a better reversal event such as today so we'll run with it.
The DJIA also has an unusual structure that really can only be labeled as some sort of ending diagonal triangle. The best labeling also seems completed at today's opening. If this is the case, prices should collapse even more fairly quickly.
Here is a variation that has a different wave 4 spot (that would match the DJIA and Composite's wave 4). In this case, we still have another final high coming, likley to coincide with Inauguration Day or whatever.  However, this supposes the DJIA count above is not yet finished either. It is a long-running ED count for the DOW so therefore this is a secondary count for the Wilshire.
Or we can show the alternate count like this below which basically suggests the same thing: that we are likely in Minute [iv] of 5 and [v] of 5 has yet to come. Here I show this because a nice "base channel" would be the spot where prices bounce and create [iv] low.
Weekly. RSI did reach 70 as I suspected it would. Double divergence, typical pattern for a wave 5 of (5) top.
I'll have more later when more internal data comes in and just tack it on the end here.
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