S & P Futures: Week in Review ( 11/1/10 - 11/5/10)

The wave structure is now exhibiting a new personality . One that no longer allows me to maintain a stance of looking immediately lower in a big way due to the fact that prices has now exceeded the upper corrective channel by a significant amount which usually signals the presence of 3rd wave price action. Secondly, a new recovery high was made that exceeded the April 4/26/10 high of 1216.5.  Elliott Wave rules state that w.2 can't exceed the origin of w.1, therefore I can no longer label the decline from 1216.5 as the start of a w.3.

Attached is a weekly chart showing my current view of the wave structure. Note my expectation is for another push higher followed by a decline that should be a sideways. The decline can't breach 1127.5 under the current interpretation.

In Monday's daily wrap up I will be discussing the upward potential of this new interpretation as well as possible alternative count.

Best of Trading