Added: 2 months ago
From: ElliottTrader
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  • On the chart at 5:20, I thought that the B wave had to be a 3 and this very much looks like a extended impulse.  I am new at Elliot and would apreciate explanation.

  • @Fernandolunatoro1 In retrospect, good analysis! because there is a clear five-wave structure up to January 31, 2010, then instead of 1-A-B, it best counts a A-B-C, down, where the C wave is the "impulse"-looking wave you are citing.

  • With the central banks interveening heavily, i agree with the possibility of a wave c down below 78 level in the dollar index,i persoanlly have kept my trade on hold and am waiting for the breakout side,thanks joe for updating everyweek,

  • Thanks Joe!

    Is there a reason that you don't label $SSEC as iii, iv, v instead of 1 a b ? 5 waves down to a zigzag seems to fit ok.

    I'm also not clear on how your $INDU chart relates to last week's video. There you counted parts of a double zigzag up for 2, and now it looks like you have moved away from that count - I also don't see where 1 down followed by A B C came from in the larger context either. Can you clarify that for me?

    Thanks,

    KaZoom

  • @KaZoom1618 Either location for a fourth wave in the SSEC results in an overlap with the prior wave. The MACD is currently higher on this lower wave, resulting in a second divergence. So the fifth wave may have ended on the first daily divergence. As to the DOW, the double zigzag up is still on the table, But in the second zigzag, it must be a-b-c, and the b-wave is not yet 38 - 79% (lower) as expected; only 23.6%. My point is this seems shallow so an alternate is considered.

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