Squawk Morning Briefing: Last Gasps?

We’ve been saying for about a week now that we expected the most likely course for markets to follow would be a five-wave decline. We also have been looking for the down sequence to be approaching an end and Monday we saw the beginning moves of a bounce from oversold conditions. Now that it appears that the anticipated move up is here we need to be prepared to follow the plan that we’ve had for as long as we’ve been looking for the five wave decline. We need to track this structure of this rise to determine if it is merely a corrective bounce in a decline that started on October 5th or a rise to a new high that may be required before a decline begins.

We have discussed how we’re going to track this several times over the past week and cover it again in today’s videos. But for all practical purposes the distinction may not be all that important. Whether this immediate bounce is the first significant bounce in a significant downtrend or the last push to a new high before a fall is merely a question of whether it the attempt to reach recent highs succeeds or fails trying. Either way, we are looking for additional downside after this move up completes.

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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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• The Dow Jones Industrial Average
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• U.S. Treasury bond futures

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.
• If the EUR/USD count is ambiguous and the USD/CHF cross helps us to understand what might happen then we’ll present the intermarket analysis the Squawk subscribers.

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About the Analysts

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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