A test of support about 2,912 was expected to begin the new trading week, which is exactly what has happened.
Today’s small shallow correction fits the overall expectation of the main Elliott wave count.
Today’s signals from On Balance Volume, the AD line and VIX all point to the same direction for price next.
Three short term Elliott wave counts are provided for members to consider all possibilities.
A small pullback remains above the short term invalidation point.
The AD line gives a signal today.
Upwards movement was expected for the last session, but this is not what happened as price moved lower. However, price remains above the invalidation point.
A new short term Elliott wave count is considered today.
A signal today from On Balance Volume and VIX gives an indication of the direction for tomorrow. So far price is behaving mostly as expected, and the Elliott wave count remains the same at the daily chart level.
Yesterday’s analysis gave a target for downwards movement at 2,637 to 2,635. Price moved lower to reach 2,625.41, 9.59 points below the small target zone. From there it bounced strongly higher, which was expected.
Upwards movement continues as expected from the main Elliott wave count. This wave count has support from classic technical analysis, particularly signals from the AD line and On Balance Volume.
More upwards movement fits the main Elliot wave count. With price closing today above resistance and signals from the AD line and VIX, the main Elliot wave count is now favoured.
More downwards movement to a target at 2,565 – 2,566 was expected before a trend change, but the trend change has arrived earlier than expected. There is strong support at the 200 day moving average.