Yesterday’s analysis expected a short term pullback to continue. A little upwards movement within the pullback fits expectations as wave B unfolds. The Elliott wave count remains the same.
As expected from yesterday’s AD line and VIX bearish signals, price moved lower today.
Two support lines are identified on charts today, along with a Fibonacci ratio, to indicate where the pullback may end.
A strong signal from On Balance Volume adds confidence to the Elliott wave count.
Upwards movement was expected, and so far overall what is happening.
There is strong resistance at this point to be overcome before the target can be reached.
Downwards movement continues towards the target. Now that there is more structure in this downwards wave to analyse the target is calculated at a lower degree.
The new main Elliott wave count expected another downwards day, which is exactly what has happened.
An upwards day was expected to continue the new trading week for Tuesday. The session did make a higher high, but then price turned down strongly. Signals today from both the AD line and VIX indicate the direction for price tomorrow.
A new low below 2,668.62 in the first hour of trading invalidated the main hourly wave count and gave confidence to the alternate. At that stage, more downwards movement to new lows was expected. The targets have not yet been met.
Upwards movement was expected to continue from last analysis, which is what has happened. The short and long term targets remain the same.
A very small range inside day changes the very short term picture only slightly. The Elliott wave targets remain the same and can today be supplemented by a classic analysis target using a reliable short term pattern.