Volume and ATR are used in this end of week analysis to analyse downwards movement for strength or weakness.
Both Elliott wave counts remain valid, and there is a clear price point which differentiates them.
Identified support at the last gap remains open today, but only just. A clear price point is given to members, which will indicate a change from bull to bear if it is passed.
Yesterday’s analysis expected that a new low below 2,819.88 would see a pullback to end below 2,796.13. The low for the day was 2,802.49, just above 2,796.13.
Downwards movement continued for Monday exactly as was expected for the short term from last Friday’s analysis.
The main Elliott wave count expected upwards movement, which is what has happened for Monday.
Signals today from all of On Balance Volume, inverted VIX and the AD line are all in agreement over the direction for the short term.
Some more downwards movement, at least for the start of the session, was expected. This is exactly what happened.
The main Elliott wave count in last analysis expected upwards movement. This is exactly what is happening.
Yesterday’s main hourly Elliott wave count expected a low was in place and price should move higher the following session. This is so far exactly what is happening.
The AD line gives a very important signal today, which should not be ignored and will be given weight in this analysis.
Upwards movement was expected. The market opened on a gap higher and thereafter moved lower, remaining above the short term invalidation point on the hourly chart.