Tuesday, October 20, 2020

Stimulus Stalemate

In the NQ daily and ES daily futures, today was an inside day that settled near the low of the range. For consistency, the ES daily futures are shown below.


With about 120 candles in the hourly pattern, the Elliott Wave Oscillator showed the expected widening pattern to match with the expanding diagonal.

As expected, the upward correction began, and prices crossed the 38.2% Fibonacci level in three waves. Yes, the correction could be over. The minimum wave length has been fulfilled and the EWO has crossed the zero line back to the up side. However, if the upward move wants to continue, it can easily do so as a Flat, if price goes down to the 90% level, and then upward to cross the ((C)) wave shown. Or, barring a 90% downward retrace, price can continue the correction in an upward multiple zigzag.

It is interesting that the stock futures settled a tad lower while the cash market is touted as closing higher.

Have a good start to the evening.

TraderJoe

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13 comments:

  1. Elliott_Day_TraderOctober 20, 2020 at 4:33 PM

    ET, is flat allowed in expanding diagonal ? From what I can see, NQ has not made a longer v yet. Is that a correct observation ? If the prior is allowed then there is a way we can count longer v done on NQ too.

    ReplyDelete
    Replies
    1. Elliott_TraderOctober 20, 2020 at 5:06 PM

      The only flats allowed in diagonals are the "b" waves of the zigzags. By 'rule' each of five legs of the diagonal 'must' be a zigzag, a-b-c. But, the 'b' wave can be a flat.

      Delete
    2. Elliott_Day_TraderOctober 20, 2020 at 6:35 PM

      Ok thanks.

      Delete
    3. AnonymousOctober 20, 2020 at 7:07 PM

      EDT - it does look as though the NQ has not yet reached for wave v, and the YM comparable w4 exceeded its assumed w2, nixing the diag. there. We have a pretty mixed picture comparing the 3 futures indices it appears.

      Delete
  2. Walter KrajewskiOctober 20, 2020 at 6:52 PM

    ET - do you keep a chart of bonds at all? I would love your opinion on them

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    Replies
    1. Elliott_TraderOctober 20, 2020 at 8:05 PM

      Walter .. both bonds and notes(shown) have reached the 90% level, and beyond and should be viewed as likely being in a Flat wave.

      https://www.tradingview.com/x/sYkrBnp2/

      TJ

      Delete
  3. Elliott_TraderOctober 21, 2020 at 9:56 AM

    Here is the ES Hourly Flat correction possibility.

    https://invst.ly/sjgdr

    TJ

    ReplyDelete
  4. jacksparrowOctober 21, 2020 at 11:06 AM

    I see some sort of a triangle to down to 3400ish

    ReplyDelete
  5. Walter KrajewskiOctober 21, 2020 at 12:04 PM

    Thank you, ET!

    ReplyDelete

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