More downwards movement was expected for the short term.
Upwards movement was again expected to continue but did not happen.
There are three Elliott wave counts today. Classic technical analysis favours the first two.
Upwards movement continues as the main Elliott wave count expects.
A strong new signal today from On Balance Volume supports the main Elliott wave count.
Price continues higher exactly as the Elliott wave count expects.
Members were warned at the end of last week to look out for strength in upwards movement. With a strong gap higher and an increase in slope of upwards movement, that is what is happening so far.
An outside day fits all three short term Elliott wave counts.
Volume, On Balance Volume and the AD line will be used today to determine if the consolidation is likely over or may continue.
A new alternate Elliott wave count for the short term picture expected another low to find support about 2,747. The low for the session was at 2,743, sitting almost perfectly on a trend line that was expected to provide final support.
A consolidation was expected to end about 2,769. Sideways movement overall fits the form of a consolidation, although it has turned out so far to be more shallow than expected.
Upwards movement continues exactly as the main Elliott wave count and classic technical analysis expect. When classic technical analysis offers strong support to the Elliott wave count, then confidence may be had in the analysis overall.
Yesterday’s analysis expected a short term pullback to continue. A little upwards movement within the pullback fits expectations as wave B unfolds. The Elliott wave count remains the same.
As expected from yesterday’s AD line and VIX bearish signals, price moved lower today.
Two support lines are identified on charts today, along with a Fibonacci ratio, to indicate where the pullback may end.