This Elliott Wave blog is an excellent profitable source for stock trading signals.
S&Ps working lower, albeit slowly. If the wave count above is correct, then prices should move sharply lower tomorrow, and possibly the rest of the week. A push higher above 2110 means that the bulls have probably regained control and will push prices higher for a while. The S&P is in a C wave which is impulsive so it should leave a clear 5 waves down. Look for lower levels n the days ahead. The strong rally today threw a wrench in my wave count but if it continues lower almost immediately from current levels then it will remain on track. Short term, the market is overbought so weakness from current levels would not be a surprise.
Update: the S&Ps should be undergoing a wave E of a 4th wave triangle as it appears my ABC correction forecast fell flat. Wave E's are usually caused by a news event so be in the lookout for big news announcements tomorrow and Thursday. Then, I'll be looking to get long for a sharp strong and fast thrust higher to break out of this triangle.
The consolidation in the S&Ps has been quite extended so I expect a large extended move higher to the 2300-2400 level before topping and completely reversing.
Update: well that bullish triangle I proposed got scrapped quick. The markets are in real trouble. We fell hard and closed in the lows Thursday and Friday, then today the S&Ps were down over 100 points in pre-market. We have been in a topping pattern for several months and so the rubber band has gotten real stretched and it now snapping back. Despite the market continuing lower in the foreseeable future, remember that the largest rallies have occurred in bear markets. So the bears need to be vigilant, use proper money management, and have strict discipline not to let greed over run your trading plan as those rallies will be fierce.
My target for S&P futures is the 1750-1770 area.
Update: the bears were in full control the last 3 trading days and shaved a huge chunk of capital from the markets. The bears have run out and short covering and "discount" buyers are in control. But make no mistake, the selling craze is not over. There is at least one 5th wave to male new lows before we can even consider if the selloff is over or not. I'm waiting for the bears to regroup and getting ready to go short again since the larger trend is still down.
