Thursday, September 23, 2010

Morning Update

PLEASE NOTE: I'm going to try to get a forum going to help increase the dialogue amongst viewers.  We'll see if it gains any traction here in the coming days.  So please visit the forum and post your thoughts and questions at the markets.  There will be a permanent link to the forum just above the most recent post.  Let's get it rollin!   ELLIOTT WAVE FORUM

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The decline from the Tuesday high so far looks corrective.  A break above 1137.22 will really make it look like a 3 wave drop, correction (Elliott Wave Tutorial, 3.4).  If so, a break to a new high on the week is imminent.  Also, the Nasdaqs are leading the charge higher and the NDX almost made a new high on the week with the Composite following closely behind.  Also, the British pound made a new high cancelling out the 5 wave drop I mentioned in yesterday's post, yet now the euro is struggling.  But there's no compelling evidence to suggest a top in these two currencies, which means a US dollar bottom MAY not be upon us quite yet.  And lastly, the internals and strength of the decline fit more of a correction, not a reversal in trend......at least not yet.  I'd expect much stronger selling with much more bearish internals than what we're seeing right now if a top was in.

However as I've said before, if the indices do get to new highs on the week, they should not be long lived.


ELLIOTT WAVE PRINCIPLE (LEARN IT FREE HERE)


But all is not so bullish.  The Russell 2000, the S&P 600 Small Caps and the XLF are still showing weakness relative to the major indices, and they all sport nice 5 wave impulsive declines (Elliott Wave Tutorial, 2.1) unlike the S&P, Dow and Nasdaqs.  So it's possible the S&P, Dow and Nasdaqs MAY make new highs on the week while these secondary indices lag and don't make new highs.

So we'll see what develops the rest of the day.  More later....


Also, don't forget to take advantage of Prechter's August 2008 Theorist offered for free.  In this issue he does a question and answer format on the government's role in the economic conditions we find ourselves in.  Below are some of the questions he addresses in the newsletter:
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  • Who does the government consider to be homeowners: you and your neighbors, or the banks that hold the deeds?
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  • Can the Fed keep making loans to banks forever?
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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.

2 comments:

crush1618 said...

NDX count is a bit different. NDX @ 2000.

PrincipleAnalysis_Blogspot_Com said...

how so?

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