A breach of an important channel changes the mid-term outlook for the S&P today. Members were warned yesterday that the risk of a pullback was heightened.
The upwards trend has resumed after a small triangle completed, which was exactly what the Elliott wave count expected.
Yesterday’s analysis expected a low was in place. Today a higher high and a higher low fits the definition of upwards movement, although the candlestick closed red. The Elliott wave count remains the same and the target remains the same.
A breach of the channel on the hourly chart indicated a low may be in place.
Price has moved higher after the channel breach, which was expected.
Downwards movement was again expected for the new week, which is what has happened.
Three Elliott wave counts remain valid. The first two have a higher probability.
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 small shallow correction within the upwards trend was expected to unfold today but did not.
The overall trend remains upwards, as expected, but there are a cluster of bearish signals developing to watch.
Last Friday’s analysis expected the new week to begin with upwards movement that was reasonably likely to make a new high above 2,848.03. A high today at 2,853.21 fits the expectation.
Upwards movement continues as expected.
The Elliott wave and classic analysis targets remain the same.