Monday, May 16, 2011

The Market Pulse




Not much has changed since my weekly forecast that I posted on Sunday. If you missed it, watch the video

The above chart includes today's session, where the market seesawed back and forth before logging another down day.  






.. and here is the daiy chart level. Notice that today's price action closed below  w.iv circle and thus the previous wave labeling has been rendered incorrect. However, the ending diagonal interpretation is still viable until 1290.25 is broken.





Sticking with the ending diagonal pattern, if w.iv is still unfolding,  then w.(c) = w.(a) at 1314.5 for ES1-057 and 1310 for the front month contract. I've redrawn the lower trendline to show how the elliott wave pattern would shift to that of a possible expanding diagonal, a pattern that is rare. There are other interpretations that will be discussed should 1290.25 be breached on a closing basis.

For tomorrow, look lower.


Best of Trading

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