A new alternate Elliott wave count for the short term picture expected another low to find support about 2,747. The low for the session was at 2,743, sitting almost perfectly on a trend line that was expected to provide final support.
A consolidation was expected to end about 2,769. Sideways movement overall fits the form of a consolidation, although it has turned out so far to be more shallow than expected.
Upwards movement continues exactly as the main Elliott wave count and classic technical analysis expect. When classic technical analysis offers strong support to the Elliott wave count, then confidence may be had in the analysis overall.
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.