The first target was met and passed today. Price continues higher towards the second target, which is calculated from a flag pattern using the measured rule. If price keeps rising through that target, then the next Elliott wave target would be used.
Bearish divergence noted in the past few sessions between price and market breadth has correctly signalled a fall in price.
Bullishness in On Balance Volume and rising market breadth all have pointed recently to higher prices.
And in yesterday’s analysis it was noted there was a Three White Soldiers candlestick pattern on the daily chart, so higher prices today were completely expected.
Price completed an outside day, mostly sideways movement to close as a small range doji. On Balance Volume gives another important signal today which may tell us what direction price may move tomorrow.
A small doji for Wednesday’s session saw price move sideways in a very small range. The Elliott wave count is only changed for the very short term at the hourly chart level, and only slightly.
The diamond pattern was broken but the possible upwards breakout was quickly reversed. The second hourly Elliott wave count expected this but price fell 6.13 points short of the target.
Price remains above the invalidation point, but the closure of the last gap and price moving back down into the prior consolidation zone puts the breakout as false. The gap was a pattern gap and not a breakaway gap.
Price remains range bound, which was expected.
Wednesday completed an outside day that closed red.
A small inside day saw price move sideways for Friday, remaining within the channel on the hourly chart.