Thursday, August 12, 2010

Elliott Wave Live: Market Review for August 12, 2010

Last time I left you with the following comments, "Odds are that we have a gap down opening and complete the third wave, then look for 4th wave with choppy price action before a final thrust down to complete wave 1 of 3. ". That's exactly what we got.

Here's what I'm looking for wave (iv). I expect that price will retrace to .382 in an impulsive manner, counting 5 waves, followed by a decline to complete wave (v) of 1 (red) of wave 3 down. If the count isn't complete by 1091.25, the possibility can't be ruled out that wave c= 1.618 wave a @ 1099.5.

The Fibonacci targets for the final push lower are provided but are only applicable if the wave (iv) terminated at 1091.25.



Looking at the 15 minute chart, I've shown a zig-zag set up where wave a = wave c at 1091. 25. The pattern should be as symmetrical  in slope as noted by the cloned blue lines. Should the market print below key support, all bets are off.

Let's see what develops overnight. It is also possible that wave (iv) could develop into a more complex correction negating this outlook.

Best of Trading.

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