Elliot Wave Update

By
Scott Myles
– January 15, 2009Posted in: Elliot Wave Analysis, Intraday Commentary

This post by Daneric40 has been promoted from StockTock Social.

Primary Count:
Market finished tracing out wave 1 of intermediate wave 5 down from 944 peak. Wave 2 started up today at the 917 low. Wave 2 appears to be tracing a zig zag.

Commentary:
The gap is an inviting target for wave 2 as a minimum. From 867-871 it also coincides with 38% Fib retracement.

Opex Friday tomorrow. Then Obama inauguration on Tuesday (market closed Monday).

Is the market still in intermediate wave 4? I don’t think so. The structure down from 944 lends itself well to a 5 wave impulse structure. Selling and breadth has been intense at times and VIX is channeling upwards.

Alternate Count:
If the market tanks back down to 818 tomorrow, perhaps a huge flat is tracing out in the wave 2 position. And then the C leg would trace back up to 851 in an ABC flat. The market may be unable to break above 951. But this is a lower probability. The zig zag appears classic so far. Wave 2′s are usually a sharp correction and a zig zag is a sharp correction. A flat is a sideways correction.

PS – Check Kenny’s Charts and vote! He has all the goods on volume/CPC/advance/decline..etc etc etc and no use in me duplicating his wonderful charts.

jan15-de1

jan15-de2

About Scott Myles