Internals today continue to support the bigger bearish picture in that volume is not supporting the rally and therefore the rally has no legs over the long haul. However, in the short term, the wave structure indicates a new high is probably coming before a major reversal occurs. Volume declined again to 715 million NYSE shares on a rally move today which is far less than the 876 million shares that accompanied the decline earlier in the week. Unfortunately for the bears though, 876 million is still a small number overall. I'd like to see volume break 1 billion to gain confidence in future direction. Most likely that type of volume will occur on a huge down day in price.
Which Method Can Traders Use to Confirm an Elliott Wave Count?
The euro is probably correcting in a wave (iv) as I labeled above. If correct, it needs to fall almost immediately because wave (iv) is getting a bit stretched relative to wave (ii). Prolonged rallying probably means I have this mislabeled, but the alternate counts are still very bearish. Bottom line, look for the euro to continue lower soon.
Who's Going to be President? Ask the Stock Market.
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.