The bull and bear tug-of-war continues as trading continues to contract...


The market continues to find support at critical price levels keeping one last big rally alive The question remains....can markets over-look, and hope, all of the world problems will calm down long enough for one last rally to an All-Time-High.

Today's rally completed a five wave impulse shown on the chart under our primary count as wave (ii). Under this scenario the market competed wave C of an A-B-C corrective wave (2) at the high several weeks ago. Since then the decline in price is forming an Elliott series of ones and twos. The first decline was "minute" wave [i] off the high that was followed by the wave [ii] correction. Last week we got the next leg down as wave (i) and today's rally may have completed the waves a-b and c for wave (ii).

A decline now as wave-i of (iii) below the recent wave (i) low followed by a brief wave-ii correction will confirm the one's and two's are complete and the first third of a third wave down as wave-iii of (iii) of [iii] will begin to much lower prices.

The second chart shows the alternate which is that the market still has one last rally left as a fifth wave before completing the long term formation. The bulls have held key support at each attempt by the bears to break lower.

For now, we show that wave 4 could still be working and that a potential contracting triangle is forming. As long as price holds Yesterday's low and doesn't break above the wave [c] high then this would count as wave [d]. A small decline that doesn't break wave [c] would form wave [e] of the triangle and complete wave 4.

A fifth wave rally to new highs would be followed, however, this rally will have a specific maximum price target simply because wave 3 was shorter than 1.

If price rallies instead from here toward the wave 3 high then the fifth wave has already begun and will still have a maximum determined target. If price doesn't breakdown now then lets hope for the triangle scenario which will provide great trading opportunities....stay tune!


 Follow the Trend
and
"Trade Safe"

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