Squawk Morning Briefing: All Waves Big And Small

Elliott wave patterns unfold in all timeframes. On a very large scale we continue to look for a significant turn down from near this area. On short timeframes we are also looking for a turn downward. It is important to remember that we have two distinct questions we need to consider:

1. Are we beginning a short-term turn down?
2. If so, is the short-term move the beginning of the larger downtrend?

Even the short-term move remains unclear as we discuss in today’s videos.   The potential for the top to be in looks better in the futures than it does in the cash indices.  Furthermore, the move down from the current peak looks overlapped and corrective in the DJIA and the move into that peak looks incomplete.   Nevertheless, we would not argue with the facts if the move down began to look impulsive to the downside.

However, until we see clear five-wave moves downward we have to allow for a new high.  But even if we confirm a short-term turn we need to remember that it doesn’t guarantee that a long-term trend change is in place.  We do expect it from this area, but on a long-term scale that could be several hundred points higher on the DJIA.   Confirmation of a larger trend change will take longer to develop.   We can look to the shorter-term moves for clues in the mean time.  Right now they have yet to clearly indicate a short-term turn and still allow for a new high.

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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:

• What price levels and wave motions would confirm an expected move?
• What price levels would make an alternate scenario more likely?
• What technical indicators should be watched throughout the day to interpret wave action?
• What intermarket movements merit special attention to understand likely price trends?

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From time-to-time when circumstances warrant, Squawk will present analyses of other markets that help interpret wave action in a covered market. For example:

• If S&P 500 and Dow counts are ambiguous and NASDAQ behavior helps identify the likely next move then NASDAQ analysis will be presented.
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Kevin McEwen and David Starr are best known to First Wave chat room participants as Kevy99 and Managematics and by their reputation for their Elliott Wave counts that have predicted market turning points. Kevin has been counting Elliott Waves for 28 years, successfully forecasting market moves in virtually every financial environment. David brings together talents in financial market analysis and software development to his wave counting. He has authored many of the studies used by First Wave Traders as well as a number of proprietary studies to aid in counting waves.

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