Downwards movement continued as expected, although the short term target was again inadequate.
Yesterday’s analysis expected a bounce for Tuesday’s session. This is what has happened.
A new swing low at the daily chart level indicates the Elliott wave counts should now be swapped over.
A signal from On Balance Volume and another signal from the AD line this week all support the alternate Elliott wave count. Price is the ultimate determinator though, so a specific price point is given for members that may indicate which wave count is correct.
Signals from the AD line and VIX at this time are in conflict. On Balance Volume may give a signal tomorrow indicating which of two Elliott wave counts is most likely.
A small range inside day does not offer clarity as to which Elliott wave count is correct. Candlesticks and the short term volume profile are analysed to determine the most likely direction for tomorrow.
Upwards movement for the week to new all time highs was expected for the main Elliott wave count.
Also, upwards movement for the week has invalidated the alternate Elliott wave count. When alternate wave counts are invalidated, then more confidence may be had in the main wave count.
A new all time high was expected for the main preferred Elliott wave count.
Members were advised that a pullback looked to be complete as early as the 11th of September, just two days from the last low.