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 new all time high at the open gap up invalidated the alternate Elliott wave count providing confidence in the main Elliott wave count. The target remains the same.
A small inside day closes green. Price remains above stops on long positions. The Elliott wave analysis remains the same.
Upwards movement continues with a new all time high. Downwards movement at the end of this session remains above stops on long positions.
Price continues to move sideways.
A large symmetrical triangle may be forming.
A brief shallow pullback was expected for Friday. Price moved overall sideways meeting the expectation.
On Friday another downwards day unfolded exactly as expected for the S&P500.
Price has moved sideways in a small range for Monday’s session. This fits the hourly Elliott wave count and the alternate daily Elliott wave count best.