Squawk Evening Update: The Last

More indecision today when both the bulls and bears had opportunities to press their advantage but failed.  This morning’s advance was impressive and quickly broke above the FibGrid 2002 snow line and kept running.  However, it failed to take out last week’s high before falling.  That leaves open the possibility that the advance into the morning’s highs was a correction before a fall.  A few things support this notion:

1. The advance would be in three waves if we continued down from here.
2. It leaves intact a count into the high that ends below 11,258.01 on the DJIA.

However, in order for the push to new highs to be corrective, the decline from October 25th needs to be motive, meaning it’s down in five waves.  Since we would need to stretch to make that count fit we still cannot prefer one direction over the other.   We’ll have our update with charts out in the morning.

That brings us to an area where we are taking a decision.  We are finding limited value in the Evening Update as part of the service.  The intent was originally to provide some wrap-up to the day and tie back to our expectations as well as provide a preview for what we would be looking at in our analysis.  However, we’ve found that:

1. Generally anything we know we want to say or look at would benefit from the charts we prepare for the morning and that makes it hard to produce in a quick evening summary; and
2. Many things change overnight which is the whole reason behind a morning newsletter.

We will still prepare the same thoughtful analysis every day and will use this as an opportunity to focus our energies in other areas that we feel will improve the service, including:

1. Participation in an Elliott Squawk forum that we will launch soon.  This will give us all an opportunity to discuss outlook together;
2. More learning resources and videos; and
3. evening alerts from time-to-time if the day’s action warrants a special communication.

In addition to our own impression, this decision was also shaped by feedback from readers.  If you have comments about what you want more of as well as what’s not working, we want to hear from you.