Market Weekend Update »» Short Term By: Tony Caldaro | July 14, 2019
Using our short term tracking, we can now count seven waves up from the Minor wave 2 low [2729]> 2911> 2875> 2964> 2913> 2996> 2963> 3014, which sets a short term inflection point. The 33 point pullback to Tuesday’s low at 2963 completed the impulsive pattern of five Micro waves as previously reported. However, the subsequent rally beyond our 3002 target to new highs created an ambiguity. We can’t yet rule out the possibility of an irregular Minute wave i top. After much discussion within the OEW group, we decided to track the irregular scenario till the market dictates otherwise. This suggests Micro wave 5 completed at 2996 and Minute wave ii is subdividing into three waves, Micro wave a = 2963, Micro wave b = 3014 so far, with Micro wave c to follow. Above 3016, Micro wave b would be greater than 1.618x Micro wave a, which exceeds our limit for this count and suggests something else may be in play. We have a couple of alternative counts under consideration and will report on those when the time comes. Friday’s close got within 2 points of our limit, while sitting at another short term divergence at the high.
Short term support is at the 2995 and 2984 pivots. Resistance is at the 3033 pivot. Short and medium term RSI both have negative divergences.
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