Upwards movement was expected for Friday. An outside day closes red. Price remains above the short-term invalidation point and within the Elliott channel.
Another upwards day with price closing within a trading range leaves all three Elliott wave counts valid. However, classic technical analysis strongly supports the main Elliott wave count.
A sideways inside day to end the trading week leaves both Elliott wave counts essentially the same.
Classic analysis favours the main Elliott wave count.
Yesterday’s bearish short-term divergence between price and both of the AD line and inverted VIX suggested downwards movement for today’s session. The target for a small pullback was 3,004.97. The low for the session was 3.82 points below this target.
Upwards movement was expected to continue and to show an increase in strength. A new all time high was expected.
Volume for the NY Comp today at 3.8 billion shares is well above the 30 day average of 3.4 billion shares, fitting the expectation of strength in this upwards trend.
A strong downwards day indicates which short-term scenario is most likely.
For the very short term, a consolidation or bounce was expected. A bounce for Friday overall fits this expectation. Price remained below the invalidation point.