PRO-ELLIOTT-WAVER

The Nasdaq has been making all time highs for weeks, however, other indices like the S&P and Dow have been lagging way behind. Markets at major turning points whether tops or bottoms become fractured. They diverge from one another which creates inter market divergences. This is what's going on now! Sometimes markets catch up and eventually all converge to create the same wave patterns. For now either the Nasdaq is topping out and ready to turn down or it has further to run and the other markets will eventually confirm the move. Today's charts show this confusion in the markets which is being displayed by the wave formations. This is all easier explained and much easier to understand by watching our video just published on our channel.    www.youtube.com/c/proelliottwaver   Follow the Trend and "Trade Safe"

Follow the Trend and "Trade Safe"

Follow the Trend and "Trade Safe"

Todays news of thousands of businesses that won't ever reopen along with Fed Chairman Powell saying the economic outlook is highly uncertain was more than the market could take and was the catylist to start the move down we've been waiting for. Friday our charts showed how the potential for the "double zig-zag" wave 2 was complete at the high and that the small five wave impulse decline should be wave (i) down to kick off the next leg of the bear market. The last two days we watched a rally fully retrace the drop which formed a 5-3-5 zig-zag at yesterday mornings high for wave (ii).  Price reversed after hitting the morning high (turn around Tuesday) and as of today the market is down 100 SP pts and over 1000 Dow pts. The move down counts as five waves at today's low as shown on the 30 min chart which we have labeled as "sub-minuette" wave-i of (iii) of [i]. The global futures chart clearly shows a clean five waves down fro...

The bad news on the economy keeps getting worse and if we're correct about the short and long term wave formation then the rally based on hope is about to end. Our first chart today is labeled to show that yesterday's high was the end of a "double zig-zag" correction from the March "minor" wave 1 low. Yesterday's high made wave (c) of [y] 61.8% of (a) of [y] which is a common relationship within zig-zag patterns. Also, wave (c) of [w] was a Fib 76.4% of (a) of [w]...another common target. The chart pattern is now forming a bearish wedge on contracting volume adding to the scenario that the rally is nothing more than a bear market correction. We didn't get much validation today with price only pulling back to the lower trend-line...but, after market trading has gapped below. We need to see price move below 2850.00 and then 2700.00 for confirmation that the wave 2 correction is complete. It's also still possible to count an ongoin...

This week we watched the stock market as it continued to grind higher with only small pullbacks. The rally is being referred to as the hated rally by traders but, Wall Street has given it a new name "The Rally of Hope." While we don't have anyway of knowing when the virus will go away or when the economy will recover...we can use the charts and the Elliott Wave to show us what is likely to happen next. With each three waves up or down or five waves up or down the formation fits together like a puzzle that will eventually form one of Elliott's corrective wave patterns. This week it has become clear that the markets are tracing out "double or triple" zigzag corrective waves. This means we have eliminated nine out of the eleven possibilities. The decline that happened two days ago looks like a small wave (c). The rally from that little low was five waves shown on the chart. This means that the uptrend is still unfolding. Now, what happens next ...

Follow the Trend and "Trade Safe"

After Monday morning's gap down open the market went sideways and then fell to a slight new low on Wednesday. The best way to count this price action is that it was all part of wave (iv) of [III]. We've labeled the formation as w-x-y with wave-y forming a "running triangle."  The push to a new low as wave (v) of [III] brought the S&P price right to the area where [III] is 1.618 x [i]. Yesterday and today the market could only muster a small bounce to the center channel line before turning down into the close to make a new low for the week. The chart above is labeled showing the small rally could be wave (a) of [iv]. The new low today would be an irregular wave (b) of [iv] and we would see a bigger rally next week as (c) to complete the wave [iv] correction. Much lower prices on Monday and we would have to conclude that wave [iv] is going to be very small and is complete at today's high. Wave [v] down would already be underway with targets ...

The last time we posted a short term chart the market had just finished the first wave down...."minute" wave [i]. Since then price had a three wave retracement for wave [ii] and then fell apart in wave [iii] down Wave [iii] set multiple historic records that would be expected but, we have to remember that this is just the first small degree waves from the all-time-highs that will eventually be part of the sub-waves of much larger degree waves down as the "Bear Market" evolves over time. The 60 minute Dow chart shows that yesterday's low has all of the sub-waves for a complete five waves for wave [iii]. Since this morning's action saw a new low in the Dow but not in the S&P we have labeled it as an (a) and (b) to start the wave [iv] corrective rally with wave (c) currently underway now. Wave [iv] could see price retrace back to the previous smaller degree wave (iv) of [iii] which is the most common target area. Also the Fibonacci scale on the ...

Follow the Trend and "Trade Safe"

Looking back 124 years to the beginning of the Dow Jones Industrials we can see that stock prices have traced out five waves and three waves at all degrees to where we are today. In 1929 the first wave completed from 1896 as "super cycle" wave (i) (blue). The 3 year decline from that high during the great depression formed "super cycle" wave (ii) (blue). From the 1932 low the market has been tracing out five "cycle" waves (pink) to form "super cycle" wave (iii) (blue) to where we are currently at the February 2020 highs. The "cycle" wave V (pink) started from the 1974 low after having completed an "expanding triangle" "cycle" wave IV (pink). The "cycle" wave is being sub-divided by five"primary" waves (black) as [1]-[2]-[3]-[4] and [5]. The "primary" wave [3] topped in 2000 and started an 8 year correction for "primary" wave [4] that was sub-divided at the "int...

Early last year we were giving traders a lot of reasons to consider that the markets were still in a large correction that started from the January 2018 highs. In March last year our charts were labeled to show how a large "expanding triangle" pattern could be the wave formation that the market was working on. During the Thanksgiving and Christmas Holiday's we pointed out that markets rallied 85% of the time the week prior to each of those holiday's. With favorable economic conditions and the euphoria of the holiday's last year we saw big rallies in the stock market. The market was able to rally far enough for some of the technical indicators to shift and support a continuation of the rally. This would have meant that the December 2018 low was the end of the big correction and that the next impulse wave much higher was underway. However, for an impulse rally to be underway the market should have started a five wave pattern from the October 2019 low that c...

The Dow supports the same wave formation that we showed in the S&P on Friday....the "zig-zag" pattern from the December low to complete wave-D of the larger triangle. This chart shows an interesting price target that was hit on Friday that helps to confirm the triangle scenario. There are several ways to calculate price targets for where the five wave rally (thrust) as wave-[c] out of a triangle could terminate. In this case we use the maximum high and low at the beginning of the triangle...indicated by the small red up and down arrows. The first target for wave-[c] should be a 61.8% relationship to this calculation. Friday's high in the Dow met this exact calculation shown on the chart. This doesn't have to be the exact high but, the fact that traders did sell the market at this price helps to confirm our primary count. The initial decline from the high on Friday can count as a small five wave impulse on the 15 min chart which could be the first clue...