A new all time high at the start of the session has been followed by a small pullback. A pullback was expected from the last Elliott wave analysis as another second wave correction.
For the short term, downwards movement was expected for Thursday’s session. An inside day completes as a red daily candlestick, mostly meeting expectations but not as clear as hoped for.
The main Elliott wave count expected upwards movement. This is what has happened to start the new week.
An upwards breakout from a bull flag pattern was expected. This looks like what has happened at the end of Friday’s session.
Downwards movement was expected to begin the new trading week. This is not what happened. Upwards movement invalidated the hourly Elliott wave count.
Price has moved higher for Tuesday as expected. A new high above 2,354.54 supports the main wave count over the alternate.
Downwards movement is unfolding as the Elliott wave count and classic technical analysis expected.
Thursday’s session was expected as very likely to see price move lower due to strong and unusual divergence between price and VIX for Wednesday’s session, which was interpreted as bearish.
Thursday made a slightly higher high and a higher low, the definition of upwards movement, but the candlestick closed red and the balance of volume for the session was downwards.
Upwards movement continues, which fits the larger picture of the main Elliott wave count.
Upwards movement was expected again for Monday, which is exactly what has happened.