Possible Counts: SPX and DOW

Lacking any clear evidence of a five wave decline from either market, the wave count MUST continue to look higher. There are numerous other ways that one could count these markets. I'm providing counts that seem most appropriate at the present time.  Readers should use the counts provided as a foundation to produce other bullish counts as the days ahead unfold. My expectation is that the eventual correct counts will reveal itself as the pattern matures.

SPX

W-X-Y

This is currently my preferred count. 

A-B-C Rare C Wave Ending Diagonal

According to Robert Precter, p (37) of the Elliott Wave Principle, " a small percentage of diagonals appear in the C-wave position of A-B-C formations." Therefore, although a valid count, odds are that this count represents the less probable outcome for price progression. 

Note: one should keep in mind that an expanding triangle interpretation exists at  quarterly chart level that would carry price above 2007 levels. Resolving that count at the weekly chart level can't be supported at this time by weekly interpretation. 

DOW Futures 

Much like SPX, Dow represent a similar pattern.

I'll be providing periodic updates with respect to these charts. Let's leave it there for now and ....

Best of Trading

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The Market Pulse

The S&P Index rally remains intact as Helicopter Ben didn't disappoint. Even though a new recovery high was reached, the move was anticipated by the corrective RSI signature I spoke of in my 4/20/2011 daily commentary. 

RSI has pushed through 60, the area where bear rallies end. ROC has also crossed the zero line, another bullish signature. 

Here is the updated weekly chart ... the bullish count. Today, 1346.25 stubbornly gave way leaving other potential targets in play.  Keep in mind that any meaningful advance above 1381 negates the bearish view where w.4 would still unfold in a running triangle (not shown).

For tomorrow, price has limited upside potential as the upper Trendline of the Detrend Osc. should provide resistance.

Turning our attention to the 30 minute chart level, the subdivisions of w.5 are unfolding. By the close, price had met a logical price objective were w.(v) of w.5 = .618{w.(i)-(iii)} yet the final subdivisions appear to need one more push up to complete the count.

Let's see what develops tomorrow.

Best of Trading



Heard On The Street: Three Topping Markets

The US and other world markets continue their advance. While investors believe that they're on a one way street heading north, Elliott wave patterns suggest that a u-turn pivot is near for the S&P, DAX and the FTSE100.


To gain unfair advantage over other traders and a detailed perspective of significant resistance, target areas and wave structures...  view this brief video update.

Best of Trading