An outside day with a new high comes with support from rising market breadth. The Elliott wave count remains the same.
A strong downwards day fits what was yesterday’s alternate Elliott wave count, which has increased in probability to now become the main Elliott wave count.
Downwards movement at the end of Friday’s session remains above the invalidation point on the hourly chart and within the short-term best fit channel. However, at the end of the week a pattern on the weekly chart along with the AD line and inverted VIX suggest a new Elliott wave count.
For the very short term, a little more downwards movement was expected to end about 2,930 to 2,924. Downwards movement for the session reached 2,916.01, 7.99 below the lower edge of the target zone.
Downwards movement was expected as most likely for Friday’s session, which is exactly what happened.
The first target at two degrees can now be calculated.
A small inside day leaves the short-term Elliott wave count unchanged.
Upwards movement has continued as the bigger picture for the Elliott wave count expected, although a little more sideways movement was expected first.