Yesterday’s analysis expected a little upwards movement to a short term target at 2,672, to then be followed by a pullback. Price began the session with a new high to 2,671.88 and from there turned downwards to complete a red daily candlestick.
A new all time high has confirmed the alternate hourly Elliott wave count. The target will remain the same.
The AD line and VIX are both giving a signal today for what may happen tomorrow.
A sharp downwards movement today remained above the invalidation point on the main hourly Elliott wave count, and the long lower wick on this candlestick is interpreted as bullish.
Although bears were able to push price sharply lower, they could not hold the lows and they could not make a new swing low below the low of the 2nd of November.
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.
Last analysis offered a warning in the summary that price may move higher, and may make a new all time high. This is what has happened today.
Price is moving sideways in a small range for the last two sessions. The short term direction expected by the Elliott wave count remains the same.
Upwards movement was expected for Tuesday’s session but the target at 2,448 was inadequate. Price moved 6.77 points above the target.
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.
Another small inside day now gives the current consolidation a more typical look. A pennant may be forming.
Upwards movement within a small range fits both hourly Elliott wave counts. Both VIX and the AD line today exhibit some divergence with price. With this divergence for both indicating the same direction, they both point to which hourly Elliott wave count may be more likely tomorrow.