Tuesday Update

Gold bounced enough today to eliminate its sell/short Alert. All indexes remain on long/buy Signals.

The bullish count has minute wave [v] of minor wave 3 underway. The new rebound high today indicates that minuette wave (v) of minute wave [v] of minor wave 3 is underway. Now that a new high has been made, it can top at anytime. However, the upper trend line and the possibility of a double top off the all time high remains a delectable target around SPY 465. Once minor wave 3 is complete, we should see a strong pullback in minor wave 4. The bullish scenario is invalidated with a trade below the minute wave [iv] of 3 low.

The bearish count has met and exceeded the 78.6% correction level expected following the leading diagonal for wave [A]. B waves are allowed to even make new highs, so this count will remain valid for quite some time still. Once minor wave C and thus intermediate wave (Y) and primary wave [B] are complete, this bearish count is looking for a nasty impulsive move down in primary wave [C] to around 3100-3200 SPX to complete cycle wave II.

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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