Sunday, 27 July 2014

S&P 500 below 1888 would confirm big top is in

A big top could be in for the S&P. As I showed last week, once the current impulse wave is complete, the entire rally from the 2009 low could be finished. That said, the daily chart Elliott Wave count for the S&P suggests that a move below 1888 is required to take the market below the wave 1 peak, and therefore is required to confirm that the current impulse wave is complete. In the meantime, the alternate count shown below remains alive, suggesting the possibility of new highs.


Dow breaks lower from six month bearish wedge

Daily chart shows break lower from six month bearish wedge. Charts include all sessions trade.


Monthly chart suggests that a move below last month's low (16673) would complete a false break higher from a huge bearish megaphone pattern, and call for a decline below the 2009 low.


Gold's false break lower a bullish edge, with last week's low key to that view