Friday, May 10, 2019

Another Lower Low Day

Today's lower low made for almost an uncountable series of waves, until it became apparent that perhaps the "c" wave of a flat wave was being made at the end of the session. Here are the ES E-Mini Futures along with the predominately diverging Elliott Wave Oscillator.

ES E-Mini S&P500 Index Futures - 2 HR - Contracting Diagonal and Flat

There are five waves down as another contracting leading diagonal, and a retrace to the area of the prior wave (iv), as well as a high above the prior a wave, preventing a truncation. Towards the end of the session, topping tails were made and a possible second wave up.  So, the c wave could be over - or it could extend. Also, these three waves could just be the first three waves of a flat (i.e. a flat of a 'larger' flat). So, the market wants to be cagey, but it can't go on forever.

Have a good start to the weekend,
TraderJoe

6 comments:

  1. Thanks Joe as usual.
    I add an interesting historical analysis by Chris Ciovacco
    https://www.ccmmarketmodel.com/short-takes/2019/5/10/trade-war-how-concerning-for-stock-market-investors

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  2. Sal - your post has been deleted, as that is exactly what I am trying to discourage: poorly thought out, multiple scenarios that do not make sense from a degree labeling perspective.

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  3. Hi Joe, thank you for great charts and commentary. What are your thoughts on gold?

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    1. Welcome. From the mid-Feb high GOLD futures can be counted as five waves down in a contracting diagonal to the May 2, low. The recent up wave has already broken the upper diagonal trend line. It must be allowed to make a fuller upward correction if it wishes, and then go on to break the low of the diagonal.

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    2. Thank you! It confirms my thoughts.

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  4. Hi Joe,
    Just wanted to write in to thank you again...I really look forward to your posts and very much appreciate the way you explain your thinking...I keep learning from you, so I keep coming back! :)

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