The market made new all-time highs in the S&P — breaking that 2480 zone that served as resistance for the last week and a half — potentially squeezing out all the shorts that had stops just over 2482.
We finally touched into that 2485-2500 region we’ve been expecting. It’s interesting how when the market previously stopped short of it at 2480 — it somehow manages to figure out a way to get into that range.
Today the Dow made new highs — again — and today would have been the 11th consecutive up day for the Dow – until it reversed at the end of the day. That’s crazy that it would have been 11 days straight up.
North Korea has produced a nuclear weapon that can fit inside its missiles, according to NBC and The Washington Post.
While most Elliott Wave folks may be looking for a 4-5 to form after what appears to be a wave 3 up today in a short squeeze — I’m not counting on it – as I’ve seen many examples where the last part of wave 3 or wave 5 don’t necessarily complete according to textbook theory.
What I’ve found to happen more often is what happened today – an a-b-c B-wave high – followed by some reversal. We very well could bounce into tomorrow morning – though I would expect that as news circulates about Trump’s comments, people will be putting in sell orders on any bounce.
More importantly, I’m looking for the market to give the 2450 Es region a test.
Last time’s chart labeled the 2477 ES high as pink b – that was wrong. Instead, that was supposed to be 1 and the drop towards 2469 ES was 2.
Here’s the crazy Dow chart – and my best guess into the count.
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