PRO-ELLIOTT-WAVER

Wave-(iv) of wave-[iii] took all of 5 hours to form and as is the norm lately was very shallow without coming close to any normal Fib targets. Although, you can see that wave-(iv) is about the same size as wave-(ii) or 94% to be exact. The patterns also alternate with wave-(ii) being a "flat" and wave-(iv) forming a "zig-zag." Price didn't waste any time moving back up to form wave-(v) to further complete "minute" wave-[iii]. Today price moved up on the open and then spent most of the day forming a small contracting "triangle." Once complete the market spiked to new highs which is referred to as "the thrust" which is always seen at the end of the "triangle" formation. The wave labels show the sub-waves-i-ii-iii-iv-and v which could be all of wave-(v). If so, wave-(v) is pretty short and hasn't reached the minimum relationship to wave-(i). However, this could be expected since wave-(iii) was the extended wave reaching a...

Last week we published charts showing our opinion of the current market structure and how the Elliott wave formation is developing. We were looking for some small degree ups and downs (4's and 5's) to complete the "minuette" wave-(iii) or "minute" wave [iii] top where we should see a small corrective move down. Since then the market has moved up in a diagonal looking pattern, although void of any over-laps, at today's high reaching the common price target where wave-(iii) is a Fib 1.618% of wave-(i). We can also see that wave-(iii) has five sub-waves i-ii-iii-iv-v. The cash market came around 10 points short of hitting the same Fib target as the futures market. This divergence could also help the correction start. Price has turned down on the day in the largest correction since wave-v of (iii) began which should indicate that the wave-(iv) correction has begun. How deep it goes is anyone's guess because of the way the market has been acting for the p...

Follow the Trend and "Trade Safe"

Follow the Trend and "Trade Safe"

The S&P500 Index has hit a new all time high today by 1.5 pts. While the Dow Index is still lagging way behind we do expect it to catch up. If the Dow fails to make a new high this would form a large divergence between two primary indices that would strengthen the opinion of a major top forming. Today we're showing a chart of the S&P index that we've had drawn since early this year that shows the market has been in a large "intermediate" wave (4) correction ever since the high of January 2018. In early 2019 we showed that the wave formation looked like it may be forming an "expanding" triangle pattern that needed to finish out the D and then E wave before completing. Price went on to finish D in February this year and then the huge drop because of Covid formed the wave E to complete the triangle. The rally form the March low is trying hard, in the face of massive uncertainty, to form an impulse five waves as the last and final "mi...

I'm finally back and ready to focus on the markets again after taking a hiatus for a couple of reasons. First,  as of yesterday I am a proud granddad for the first time but, I am a granddad on both sides at the same time with a beautiful baby girl and beautiful baby boy with only 14 hours between them...what are the odds of that..:-)                       And second, as far as the markets are concerned it was a perfect time to step back and let the chart patterns work to form some clarity as to what traders are thinking. It's hard to believe indices have recovered back to the all-time-highs with the Nasdaq making new highs during a pandemic that has caused the worse financial conditions at least back to 1929 and probably percentage wise much worse. In the years as a Hedge Fund and Pension fund trader on Wall Street I had a rule! Wave 2 corrections could never exceed 78.6% of the corresponding Wave 1 unless the ...

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"

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 ...

Today we saw a big price drop right from the open on the news that Corona cases are surging and that Connecticut, New Jersey and New York have 14 day quarantines for any visitors entering from the new hot spots. However, that news didn't go away 3 hrs after the market opened yet prices stopped going down and rallied the rest of the day. The point of rehashing what the market did today is to show how fundamental events create short term reactions in the markets but that technicals are really what controls price movement. To clarify....today's low price had a Fibonacci price relationship to a previous move the market made where wave (c) down is 1.618 times the (a) wave down. This is the reason traders stopped selling! This price relationship has the possibility to confirm a major Elliott Wave chart pattern that will start a big rally. However, if today's low can't stop the selling it will confirm the next major move down. The very small interval wave structur...

Today's update is a video discussing the recent market action and what the charts are telling us about today's big down day. Watch the video here.....https://bit.ly/2UPrVpVproelliottwaver Follow the Trend and "Trade Safe"

Follow the Trend and "Trade Safe"

Back from vacation and it doesn't look like I missed much. One thing I learned long ago was that if I wanted the market to do something I was waiting for...all I had to do was go on vacation and it would happen. I'm not sure it worked this time. The long ascending sideways rally just keeps going and it's hard to count any wave structure with absolute certainty. The 30 minute chart shows a five wave structure with a possible diagonal wave-v of (v) of [c]. I don't have much confidence in this particular count and I'm showing mainly to try to align it with the NQ...which by the way made a new all time high today. What a major divergence with the other indices! Are the other indices working on 5th waves to new highs and just lagging behind? Or are the divergences showing us that this is wave 2! The problem with the diagonal in NQ that people are overlooking is that the third wave is the longest. By diagonal rules this shouldn't happen...the third wave sho...

The price action continues to contract while staying within the large wedge shape formation. Two charts posted today show the primary count and the alternate count if price makes a move above last weeks high. Today's market update is explained in a video you can see on our YouTube channel by clicking this link...   https://bit.ly/2UPrVpVproelliottwaver Follow the Trend and "Trade Safe"

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"

The past few days the market has grabbed any little piece of news that can possibly be positive. Most traders are scratching their heads trying to figure out why the market is going up. This is what happens during a bear market relief rally. However, we've been prepared for and anticipated the rally since the low three weeks ago all based on the Elliott formation. The markets are in the process of anticipating that the Corona virus will peak out and factoring this into the price. This is good because the market is always ahead of the fundamental events that take place. In our opinion better news taking place now with the virus has allowed the wave 2 correction. But, it is also our opinion that there isn't anyway that the markets can be factoring in the recession that will take place in the months ahead with this rally. When markets finish the relief rally price will reverse hard to the downside to factor in the economic disaster that the lock down of the country wil...