The S&P 500 has continued to make new highs this week exactly as the Elliott wave count expected. There is underlying strength in this market with rising breadth and new all time highs from On Balance Volume. Elliott wave targets remain the same.
A very little downwards movement was expected for the short term. A small range inside day mostly fits the expecation.
A pullback or consolidation was expected to continue for the short term. Monday’s downwards day fits this expectation.
Price remains range bound and all three Elliott wave counts remain valid.
A new low at the open of the session invalidated the main Elliott wave count and gave confidence to the alternate. At that stage, the target for downwards movement was 2,842.28. The low for the session was at 2,822.
At the end of this week, the AD line and VIX indicate the most likely Elliott wave count.
A small range day makes a new all time high.
Today RSI, the AD line and VIX are used to indicate which of two Elliott wave counts may be most likely.
A continuation of sideways movement overall was expected for this week. A small pattern may be developing on the daily chart, which may provide a classic technical analysis target to supplement the Elliott wave target.