Overall, price continues to move higher towards the Elliott wave target, which remains the same.
A new all time high for the S&P500 was expected as likely this week. While price has not managed to make a new all time high, Friday’s high is just 0.59 points short. Strength in upwards movement fits the Elliott wave count.
Yesterday’s summary advised members to take the alternate Elliott wave count seriously. A new low below 2,931 invalidated the main Elliott wave count and provided confidence in the alternate Elliott wave count. At that stage, the targets were 2,923 or 2,898.47. A low for the session at 2,874.93 saw both targets met and passed.
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.