Elliott Wave Update ~ 3 August 2012

Friday, August 3, 2012

Elliott Wave Update ~ 3 August 2012

Looks wedgy on a slight RSI negative divergence.

Wilshire5000 has not yet confirmed the S&P 500"s move to a higher high today.

NYSE ended 83% advancers vs. decliners and 89% up volume ratio. Not a 90% up day. NASDAQ ended  77% and 83% respectively.  Yes a very good day internally but nowhere near the heydays of the early rebounds in 2009 and 2010.


The wave structure up since the 1266 low is extremely choppy. Everything still indicates that things will reverse in a Minor 3 down.

S&P 500 Futures resistance levels

• ES Near falling resistance line, Crucial fibonacci level and horizontal resistance line. 
• Above mentioned levels may stop bulls from bigger gains. But the rising support levels will keep the bulls interested.

Friday, August 3, 2012

This bullish wave

I pointed out yesterday that trends were still pointing up and how it was premature to assume a "top" was in because of the sell off and look what happened today. The market managed to make a higher high and it looks like it really wants to go for 1400s as soon as next week. And technically, the market could be on that Wave 5 I've been talking about since early in the week or on W1 of a bullish Wave 3 so it's still too early to tell what's coming next. What we do know is that all trends are bullish and the market managed to reset some of the overbought conditions from last week, so there is room for the market to go up before being in overbought territory again.

Have a great weekend!

Long Term Portfolio: 100% Long
Short Term Trading Strategy: Shorting intraday extremes, closing same day