A quick look at counts and log vs. analog channels (updated: analog chart)

My two favored counts have the current pullback as either intermediate wave (2) of primary wave [3], or minor wave 4 of intermediate wave (1).  The former count implies a more mature wave than the latter, but both counts will ultimately take the markets to new highs.  A look at the log chart below shows the first count, that intermediate wave (2) is underway, or possibly complete.  Note that intermediate wave (2) of P [1] retraced just over 23.6%, a similar level reached by this current retracement.  On the log chart, the SPX is also finding support on the dark green shaded area, which has been proven support in the past, and is close to a lower channel touch, though there is a bit more room should it still require another small move down to complete.

Now, switching to an analog chart below note the pink dashed channel that is defining intermediate wave (1) of P [3].  If this channel holds, then we should see one more move up before a larger pullback in intermediate wave (2) to the black solid lower channel trend line:On the subscription site, I post my indicator system for 10 indexes: DOW, SPX, Nasdaq, RUT, Financials, Transports, Consumer Staples, Gold and Copper.  Below is the DOW chart with the indicators and buy/sell signals indicated by the green/red lines.  This is a sample of what is posted each night for each of the 10 indexes. If you’re interesting in becoming a subscriber, then see the link to the right.

About alphahorn

I received an MBA from Columbia University’s Graduate School of Business in New York and am a Wall Street veteran. I’ve worked for a number of investment banks including Smith Barney and First Boston/C S First Boston in New York. Over the years, I have developed my own Proprietary Swing System and I combine that System with my own Elliott Wave Analysis to trade.
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