Downwards movement continued, as expected, and found support at three different trend lines.
Price moved lower for the session, which was what was expected for the short term from the hourly Elliott wave count.
A little upwards movement was expected from the hourly Elliott wave count published in last analysis. This is exactly what happened for Friday’s session.
A target may now be calculated for the short term at two degrees.
Downwards movement is unfolding as the Elliott wave count and classic technical analysis expected.
A new low below 2,371.54 invalidated the hourly Elliott wave count and indicated a pullback has likely arrived.
An upwards day was expected for Friday. Price made a lower low and lower high, the definition of a downwards day, but the session closed green.
Price remains above the near by invalidation point on the hourly Elliott wave count.
Downwards movement for the day remains above the invalidation point and the breakaway gap is offering support. Volume analysis today may help to determine the direction for tomorrow.
A new high above 2,367.79 confirmed the alternate hourly wave count, which expected more upwards movement with an increase in momentum to a target at 2,397. The high for the day was 2,400.98.
Friday completed an inside day which fits the Elliott wave count well.
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.