Squawk Morning Briefing: Continued Caution

Overnight futures were up even before a good report from JPM.  That, combined with a positive response to a “beat” from INTC has futures pushing to new highs as we prepare to publish.  The longer-term count still favors the notion that this current move up is part of a correction, but to keep that possibility consistent with Elliott Wave theory we need to turn down before the April 26th peak.

The count leading to such a turn is not clear.  This is not to say that it favors a prolonged advance.  It is simply not clear.  This has us being extra cautious right now.  We have more to say about this in our discussion of the DJIA.  While it is sometimes frustrating to sit and watch, we believe it is important to know when markets are most dangerous and all of our analysis tells us that now is one of those times.

With that out of the way, we do see some shorter-term possible Fibonacci targets above near 11,100.  These are also near the center line of a channel that his been developing.  However, as we’ve noted, we would only enter a short-term trade near those levels if there was something else to recommend it.  And we will only look for longer term trades once we see some confirmation.

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Elliott Squawk delivers thorough market preparation every morning in time to take action during the trading day. By combining up-to-the-minute futures activity with traditional end-of-day analysis from cash indices, you receive analysis based on the latest conditions as the trading day sets to open. Each issue of Elliott Squawk goes beyond traditional Elliott Wave analysis because we recognize that trading Elliott Waves is much more than just looking at the most likely current count. Squawk will prepare traders to assess the market action as it unfolds by answering questions that any Elliott Wave trader should consider:

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