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.
A small pullback remains above the invalidation points on the hourly charts.
The main Elliott wave count is still strongly favoured by volume and On Balance Volume.
Another very slight new all time high continues the upwards trend today.
For the very short term, a little upwards movement was expected for Tuesday’s session and this is what has happened. Tuesday put in a higher high and a higher low, closing as a doji, which is entirely normal within a correction.
The main Elliott wave count expects more upwards movement, and it has strong support from classic technical analysis, particularly a very bullish On Balance Volume and rising market breadth.
Another new high was expected, but the sharp pullback during Wednesday’s session was not expected. Price remains well above the invalidation point on the hourly Elliott wave count.
On Balance Volume and the AD line give strong clues today as to what to expect next.