In the weekend post:
I posted the following chart – saying that we may get a retest of 2065 into Monday morning. That’s exactly what happened into the open.
From there, bears had their chance to sell off from there — but they couldn’t. Bulls took over.
We are now at 2076.
Indeed, we found support at 2055.50 and then went up to 2066.25 shortly before the market open.
At the market open, we dropped down to 2059 — and then from there proceeded to make several 1-2- waves.
While the potential existed for a continued selloff today – these series of 1-2’s are not bearish.
We MAY have have a completed A-B-C 4th wave. The B-wave portion was full of crazy news including Fed announcement on April 27, followed by Bank of Japan news, Carl Icahn news, AAPL earnings, then FB earnings, then AMZN earnings.
B-waves are the most difficult to trade and analyze. I really hope we are not entering into another B-wave followed by C-wave down to 2040. So far, from the wave structure of what I see, I’m leaning towards this being the beginning of the 5th wave high over 2100.
I should note that over the weekend and this morning, almost every expert Elliott wave person was saying that we have to have a 4-5 according to textbook. Well, in real life, things don’t always line up with what you read in the textbook. I think this is one example.
Some clues I saw include that truncated 5th wave in the Nasdaq while S&P and Russell made new lows on Friday. Additionally, traday, all indexes posted super high 4th waves — which is not typical if the market is to move further down.
Expecting this as the start of wave V up with Wave IV completed at 3pm last Friday.
In the previous blog post, I also posted this chart suggesting the 4300 may act as support and complete what looks like a wave II drop in the Nasdaq.
Indeed, the 4300 looks to have served as the low as we are now 70 points above it at 4370
Intraday wise – we had that truncated 5th wave before 4pm last Friday – then on Sunday night, we dropped to 4319 — and from there formed a series of 1-2’s until we broke out over 4350.
The Russell had quite adrop at the open til 10am, but from there, in conjunction with the other indices, it proceeded to move up.