The first target was met and passed today. Price continues higher towards the second target, which is calculated from a flag pattern using the measured rule. If price keeps rising through that target, then the next Elliott wave target would be used.
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 quick spike up was expected to begin the week, but it was expected to move just above 2,469.64 before turning. Price has moved comfortably higher, reaching so far to 2,488.95.
A small doji for Wednesday’s session saw price move sideways in a very small range. The Elliott wave count is only changed for the very short term at the hourly chart level, and only slightly.
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.
Upwards movement continues with a new all time high. Downwards movement at the end of this session remains above stops on long positions.
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.