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Tuesday, January 14, 2014 1:51:17 PM
Elliott Wave analysis:
* Tuesday, January 14, 2014
Don't Get Too Bearish Just Yet
Yes, I know, I am the one that is saying it. But, in truth, until the market breaks down below levels I'll explain below, we still have major support under this market for another 4-5 wave set up to take us up one more time. But, that does not change the fact that each time we go up, the market is getting weaker and weaker by all the technical measurements I follow.
As I warned over the weekend, and again Monday morning, a break down below 1830ES would open the door to a potentially larger drop, and with 1826ES breaking, it had us targeting 1814ES at a minimum. At this point, as long as the market maintains below 1822ES, I will be looking for the 1806ES region, which is the 2.00 extension of the potential c-wave down.
For now, I am still awaiting the potential bottom in wave 3, which generally should find support at the 1.618 extension, which is 1812ES. If the market cannot find support there and drops significantly lower than 1806ES, I will not be able to view this drop as wave (4), but the start of a much bigger correction. The way we act into the close and into tomorrow should provide more clues.
Also, note that the 1.00 extension down is the 1822ES, so any 4th wave in this c-wave should find resistance at that level and set up a 5th wave down.
http://www.decisionpoint.com/TAC/GILBURT.html
George.
Click on "In reply to", for Authors past commentaries.
* Tuesday, January 14, 2014
Don't Get Too Bearish Just Yet
Yes, I know, I am the one that is saying it. But, in truth, until the market breaks down below levels I'll explain below, we still have major support under this market for another 4-5 wave set up to take us up one more time. But, that does not change the fact that each time we go up, the market is getting weaker and weaker by all the technical measurements I follow.
As I warned over the weekend, and again Monday morning, a break down below 1830ES would open the door to a potentially larger drop, and with 1826ES breaking, it had us targeting 1814ES at a minimum. At this point, as long as the market maintains below 1822ES, I will be looking for the 1806ES region, which is the 2.00 extension of the potential c-wave down.
For now, I am still awaiting the potential bottom in wave 3, which generally should find support at the 1.618 extension, which is 1812ES. If the market cannot find support there and drops significantly lower than 1806ES, I will not be able to view this drop as wave (4), but the start of a much bigger correction. The way we act into the close and into tomorrow should provide more clues.
Also, note that the 1.00 extension down is the 1822ES, so any 4th wave in this c-wave should find resistance at that level and set up a 5th wave down.
http://www.decisionpoint.com/TAC/GILBURT.html
George.
Click on "In reply to", for Authors past commentaries.
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