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"

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 was options expiration for the June contracts which caused a price gap higher on the open. The gap up open was immediately filled making it an "exhaustion" gap. The decline through out the day formed a small impulse five wave structure that took out yesterday's low. In yesterday's video we showed how a possible "triangle" was forming for wave-b and that if it was a "triangle" we would see a small move higher as wave-c to complete the wave (ii) correction. It appears this is what the market did! We've labeled the small five down today as "micro" [1] of "sub-minuette" wave-i. If this is what the market is doing then we should see a gap down Sunday night and Monday morning for wave [3] of wave-i. If this is what the market plans to do we will see price form a larger five waves down below the previous wave (i) low and finally break and over-lap the top of the previous wave [a] high. If all of this happens n...

Follow the Trend and "Trade Safe"

Today was a volatile day and great if your a trader but not if your a position trader or worse swing trading. Yesterday the experts said there was a Covid surge and today they said there isn't and not going to be. This is causing a Social Mood on steroids market! Yesterday was a 90% plus (NYSE) declining vs advancing down day, the markets traded back below the 200 day MA, volume was heavy, there was as perfect of an Island Reversal as you will ever see and the candle sticks gave a big sell...this is all bearish at least for the short term if not long term. With all of that...here's what Elliott has to say which is what we really need to know. This morning we saw a big gap higher on the news because the experts said we wouldn't have a virus surge and even if we did we'd be prepared for it. This was good news and it could have been a "break away gap" starting another rally, however, it didn't last and price filled the gap canceling the immediate bul...

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...

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...