Elliott Wave Update ~ 10 April 2014
One of the 2 patterns below may likely prove out to be correct.
Bear count. If this is correct, prices are heading south in a hard way soon.
Short term bull count. If this count is correct then prices will hold and manage a new high, even if marginal.
Supporting evidence gives a lot of credence to the bears. Why? the market has been very fragmented and many momentum indicators are flashing a waning long term rally is ending. In fact the DJIA closing high was still in 2013!
Conclusion:
Even if the Wilshire was to manage a new high, the high would be a (v) of 5 high and the market would be due to turn down anyway.
The really scary part is if the bear count is correct, the market is now only getting started on a potentially powerful subwave (iii) down. Thats EW logic in a nutshell. We still have a valid potential expanding wave Minute (iv) triangle but market internals don't seem to be validating that. The market is fragmented and internal selling measures are increasing.
In any case things should get exciting.
Even if the Wilshire was to manage a new high, the high would be a (v) of 5 high and the market would be due to turn down anyway.
The really scary part is if the bear count is correct, the market is now only getting started on a potentially powerful subwave (iii) down. Thats EW logic in a nutshell. We still have a valid potential expanding wave Minute (iv) triangle but market internals don't seem to be validating that. The market is fragmented and internal selling measures are increasing.
In any case things should get exciting.
More posts from
