Tuesday, August 1, 2017

Flexibility and The "Hard Right-Hand Side" - 2

Market Outlook: Money is apparently rotating to the 'perceived' safety of the Industrials
Market Indexes: DJIA new ATH, SP500, $NDX, $RUT, marginally higher

We said yesterday, that based on today being the first day of the new month, it was possible to see inflows from pension funds, company bonuses, dividend reinvestment plans, 401k's, etc., and that did occur in a small way. The S&P500 closed yesterday at 2470, gapped up at the open to 2479, and then traded lower to come within 1 point of closing the opening gap, then traded sideways to end the day at 2476, up +6.05 points.

In the process, because of the higher high, it looks like one of our triangles was finalized in form. We'll show you that chart from the real time chat room below. It is just a continuation of the one we showed from yesterday, with a slight modification.

SP500 15-Minutes - Higher High Resolved Interior Triangle

So, during the course of the day, it seemed more likely that this long triangle was just the x wave that followed the w wave, and the higher high was the .a wave of the y wave. We are likely waiting on the y wave upward to complete, possibly to hit the 78.6% Fibonacci retracement level - which was again missed today.

The down wave that did not quite fill the gap was the .b wave of y, and now there 'should' be a five wave upward sequence for the .c wave of y. And, yes, such a five wave sequence could turn out to be an ending diagonal if it wants to.

Well, that's it for now. Have a good start to your evening.

1 comment:

  1. Joe, thanks again for sharing your wave count thoughts. Are you still counting the DJIA as shown in your July 28th post? If so, do you still believe the DJIA is forming the (iii) wave, or is the (iv) a running variety tucked away somewhere in this relentless up move?

    Thanks again.

    Doug Elkins