Elliott Wave Market Wrap: Part II

Turning our attention to the weekly chart, key support is (999.5- 1006.25). I'm using a Dual Moving Average System to identify trend and market compression. Compression, in visual terms, is when moving averages come together and then seperate. The faster moving 13- period sma is just about kissing the slower 26-period sma. The near term implication of compression usually result in the expansion of price. Look for the 13-period sma to cross the 26 -period sma providing a classic weekly sell signal as prices continue the downtrend established from b (green). Another possibility is that the 13-sma slightly penetrates the 26 - period sma, then moves in the opossite direction, as prices rise. Let's see what transpires over the remainder of the week. We have allot of economic data toward the middle to end of the week.