Wednesday, November 24, 2010
I've started my Thanksgiving with family and friends already, so today's post will be brief. I'll be back Monday. Happy Thanksgiving all!!
Today's internals show a very bullish day right in line with price, however volume was obviously low with the day just before Thanksgiving. The flip flop nature of the market and internals the past week or so is symbolic of a triangle which I'm counting for Minute wave ((iv)).
The market rallied strong off the descending trendline that I've been tracking the past few days as expected. Today's rally should continue Friday and maybe early next week to complete Subminuette wave c of Minuette wave (b) within the Minute wave ((iv)) triangle. My target area of Subminuette wave c to top is at the 1214 area of the S&P. The triangle scenario suggests a net sideways move for the next several weeks, so be positioned accordingly, at least until the triangle scenario is complete, or busted.
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Despite the stock market's strength, the euro remained weak as well, and the US dollar strong. The typical Thanksgiving time euro weakness and dollar strength is back in action this year. Although it appears Minuette wave (i) might be complete since 5 waves can now be counted down from the Minor wave 2 high. So a sharp Minuette wave (ii) rally MAY be on the horizon. I certainly would not get long the euro here, but for those who want to enter short, or add to their shorts, you might have an opportunity coming soon. But the larger trend is still firmly down, so the path of least resistance remains to the downside.
Now go enjoy turkey time!!
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PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.