PRO-ELLIOTT-WAVER

Following up after yesterday's video...this morning we saw a gap open higher as an "exhaustion gap" which normally takes place in a fifth wave. In this case it was wave-v of (III). Price tagged the internal trend-line (blue) with a 900 point gain and then reversed for the rest of the day to close negative. The decline is three waves down and when looking at a 10 minute chart you can see a clear 5-3-5 pattern as an a-b-c correction. The low going into the close tagged the Fibonacci 38.2% retrace of wave (III) that we have labeled as wave (iv). It's important that this decline holds the previous wave-iv of (III) at 2612.00 if this is going to be wave (iv). The chart is labeled showing the alternate count as (a) (b) (c) which would mean today was the end of wave [c] of 2 and that the next big decline is starting. This is an alternate we're watching just in case! Tomorrow should be an important day in respect to the wave formation!!! Follow the Trend...

Today's update is a 7 minute video....tap on the chart to subscribe or watch the video. Follow the Trend and "Trade Safe"

Pro-Elliott-Waver YouTube Video Subscribe Todays update includes a video explaining the short term market moves. There will be more videos including short, medium and long term charts coming. Most but not all of the videos will be for members only that have subscribed so be sure to click the link above and subscribe. Each video will also have an icon in the lower right corner near the end of the video that you can click on to subscribe and also the sidebar of the blog.  If you have a problem subscribing send an email to harlan@proelliottwaver.com so we can get it working.  If our primary wave count scenario continues to form the markets will be extremely exciting, for traders, and will also be very scary...stay tuned! Follow the Trend and "Trade Safe"

It is hard to believe that this market wants to rally, so bad! Even though today was a big down day caused by the near doomsday news on the coronavirus....it is just a pause before the market tries to rally again......This is the true definition of a "bear market rally." Since the end of the first five wave decline over a week ago the market has been in a relief rally. The decline completed wave 1 and the corrective rally underway now, when finished, will complete wave 2. Wave 2 will form three waves that we are showing as [a]-[b]-[c]. Yesterday's high reached the Fibonacci 38.2% retrace of the entire decline and also touched the upper trend-line. The high on Monday completed wave [a] with today's decline as part of wave [b] which when complete should start another rally leg for wave [c] of 2. Notice how the wave structure of the market matches right with the fundamental news events. Price had finished it's first [a] wave rally and just needed a...

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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 ...

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...

Late Friday we saw a drop to a new low for the move down from the high that hit 3212.75. This was the first target as this was the 4th wave low of the lessor degree which is the common target after the termination of a five wave rally....indicated by the horizontal dashed blue line. The chart is labeled showing that Friday's low also completed a five wave pattern down from the high that came close to the 27.2% retracement of the previous wave [iii]...also a common wave four target. Since the decline formed five waves and since a correction can't be made up of a single five wave move we have labeled it as wave (a) of wave [iv]. We can now do a process of eliminations and assume that wave [iv] will eventually turn into a 5-3-5 "zig-zag" formation. Today's rally should be part of a retracement of the decline that is labeled as wave (b) that when complete will lead to another 5 wave decline as wave (c) of [iv]. This drop will most likely break below Frida...

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In the previous update we outlined a potential triangle structure for wave (b) that completed into Thursdays close. However, overnight trade broke above the maximum price allowed at 2039.75 invalidating the potential triangle. This now confirms that wave-c/y of (b) becomes the primary count which is in the very late stage. The two charts are labeled to show that the only options here are whether wave (b) will end as w-x-y or a-b-c. If the complete pattern ends with wave-y then the high today makes wave (b) complete. If the correction off the high today is a small degree wave [4] then we will see another small rally early next week for wave [5] to complete wave-c and to further complete wave (b). Once complete Wave (c) down will still have targets to or below 2720.00. Follow the Trend and "Trade Safe"

Today's gap up open violated the wave-i of (c) down shown in the last update but, brought an interesting pattern we have been watching to the primary count. At the end of wave-c  we noticed that there was a 4-1/2 point relationship, shown in the blue circles, with the low of wave-b and the top of wave-c. This was an early sign that a "triangle" structure could be forming for wave (b). When the decline from wave-c finished we measured 9 points from the wave-b low and then with this mornings gap up we eagerly watched the 2930.75 price target where wave-e would also be 9 points from the top of wave-c. The exact high today was 2930.75 and then price declined. So, there is a good chance that today marked the end of a three week long correction that formed a "contracting triangle" for wave (b). Price did drop but not far and also failed to form a small impulse wave. For now we need to see a further move down below 2900.00 to confirm that wave (c) is under...

Last week's update was counting the rally over the past week as wave (b) which was correcting the initial five wave impulse decline from the ATH labeled as wave (a). Confidence in this count was helped over the week by a shrinking advance/decline along with volume and momentum divergences. And now (finally) with today's large decline we have price confirmation. Wave (c) down should be under way now which should form a five wave structure. Price still needs to move below 2820.00 but once it does we should see a move to or below 2720.00 before completing wave (c) of a larger wave [a].  It's possible that the market could drop in a large five waves down from here to the December low. Our labels reflect that the wave formation will be a double three which is why we label at the "minuet" degree for now. However, we could change this to "minute" degree if price gets carried away and forms a single "zig-zag" down to our expe...

Since the low last Thursday the market rallied tracing out a small five wave pattern into yesterday's high. We posted this chart yesterday labeling the rally as (ii) or (b).  We thought there was a chance to add a small sub-wave today to retest the internal trend-line but price was unable to rally and instead declined enough to confirm the top yesterday...at least short term. If price did in fact top then today should be the start of a larger decline. We label the chart with (iii) or (c) because it's not clear what structure the decline will take seeing how we believe this to only be part of a larger degree correction over the next couple of months as the long term chart posted shows. The bull scenario now would be that this five rally is only wave-i and will subdivide higher before completing (ii) or (c). Obviously another move to challenge or break the recent ATH would have the potential for a strong impulse wave much higher. Follow the Trend and "Tr...

Last week we saw the futures decline to complete five waves from Tuesdays high to the low on Thursday. The subdivisions of the five waves provided us with several Elliott patterns as labeled on the chart. Wave-iii had five sub-waves ending with a diagonal [5] of iii that was followed by a triangle pattern for wave-iv. Once wave [E] within the triangle completed price dropped to a new low tagging the lower trend-line to end the five wave decline.  The chart also points out that wave-v was the same length as wave-i. The decline can only count as five waves of -c- of an a-b-c or wave (i) starting the next impulse decline once the market corrects for wave (Ii). The problem with the wave (Ii) scenario is that Friday's reversal appears to be forming five waves up which would be bullish for a move above Tuesdays high at a minimum. Follow the trend and "Trade Safe"