PRO-ELLIOTT-WAVER

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...

Since we last updated Gold we've seen a large drop that has been followed back to a new high in a five wave structure. A large "double" zig-zag pattern labeled as (W)-(X)-(Y) from the 2015 low is in the final sub-waves of completing. The top could already be in place shown on the weekly chart below, however, looking at the daily chart we can see a potential contracting "triangle" that formed over the past few weeks. Triangles like this only happen in a fourth wave position so it's likely that a fifth wave rally above 1800.00 will happen. Moving below the wave (e) of [iv] low at 1692.10 would confirm the recent high was the end of the rally. We explain the long term chart in detail and what to expect next for Gold in a video today on our YouTube channel... Hoping everyone has a great and SAFE holiday weekend!!! Follow the Trend and "Trade Safe"

The gap up open on Monday changed the immediate bearish count for the start of wave 3 down. Now we have several alternates that are all possibilities with the first chart showing that the "double zig-zag" can still be forming. The second chart is another alternate for the wave 2 scenario if the market still needs more time. Both charts are explained in a video today on our YouTube channel... https://tinyurl.com/Pro-Elliott-Waver 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 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"

Follow the Trend and "Trade Safe"

The market rally continues as price grinds away  trying to reach the targets shown on the chart with today coming close to the equality between [c] and [a]. The first chart shows how the rally is sub-dividing along with all the sub-waves down to the "micro" and "sub-micro" degrees. Choppy price action since last Thursday has caused the wave formation to get a little ambivalent. The best evidence of this can be seen by the momentum which is diverging across all time frames...indicator at bottom of chart! The wave formation appears now to be forming an a-b-c x a-b-c referred to as an Elliott "double zig-zag." The way this pattern is labeled is with a w-x-y shown on the chart. There are two other alternate ways to label the choppy action but, for now this looks to be the best. This can change especially since corrective waves are by design meant to be confusing and can take more than 11 different formations. The upper targets have almost...

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...

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...

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"