After a consolidation price will break out. The presence or absence of support from volume on the breakout tells us how reliable the breakout may be.
Click chart to enlarge.
Pennant patterns are one of the most reliable continuation patterns. But in an upwards trend the breakout should have support from volume.
For price to keep rising it requires increased activity of buyers. Upwards breakouts that do not have support from volume are suspicious.
This upwards breakout comes on a day with slightly higher volume, but the balance of volume for the session is downwards. Stronger volume during the session supported downwards movement, not upwards.
The breakout is suspicious and may turn out to be false.
While volume is important for upwards breakouts, it is not so important for downwards breakouts. The market may fall of its own weight.
Original post published @ 04:47 p.m. EST on Elliott Wave Gold.
The diamond pattern was broken but the possible upwards breakout was quickly reversed. The second hourly Elliott wave count expected this but price fell 6.13 points short of the target.
Continue reading S&P 500 Elliott Wave Technical Analysis – 8th August, 2017
A small diamond pattern may be forming. This supports the Elliott wave count.
Continue reading S&P 500 Elliott Wave Technical Analysis – 7th August, 2017
A small doji at the weekly chart level now puts the trend from up to neutral, at least for the short term.
Continue reading S&P 500 Elliott Wave Technical Analysis – 4th August, 2017
A simple classic technical analysis pattern may answer the question of what direction to expect tomorrow from the S&P500 upon release of Non Farm Payroll data. This release is expected to move markets strongly:.
Click chart to enlarge.
Pennants are reliable continuation patterns. The pattern is supported if volume declines as the pattern forms. Pennants normally appear about halfway within a trend.
The measured rule takes the flag pole which precedes the pattern and adds that length to the expected breakout of the pattern.
If this pattern is correct, then tomorrow may see an upwards breakout to new all time highs for the S&P500.
Original post published @ 06:28 a.m. EST on Elliott Wave Gold.
Another small inside day now gives the current consolidation a more typical look. A pennant may be forming.
Continue reading S&P 500 Elliott Wave Technical Analysis – 3rd August, 2017
Sideways movement completes an outside day and fits both Elliott wave counts. This market is again range bound.
Continue reading S&P 500 Elliott Wave Technical Analysis – 2nd August, 2017
A little upwards movement was expected for Monday. Price fell 2.04 points short of the target on the main hourly Elliott wave chart before turning lower to print a red daily candlestick.
Continue reading S&P 500 Elliott Wave Technical Analysis – 31st July, 2017
A small inside day sees the Elliott wave count only slightly changed at the hourly chart level.
Continue reading S&P 500 Elliott Wave Technical Analysis – 28th July, 2017