Squawk Morning Briefing: Measuring Gap?

This morning’s YM video was recorded before prices started the steepest part of their pre-market descent. At that time there were multiple interpretations available for the action including one which allowed for prices to be approaching the end of a five-wave decline and preparing four a bounce.

Meanwhile, our view in the DJIA remains the same the situation is ripe for a dramatic decline so long as we continue to see prices follow the very specific path outlined in last night’s video. A strong drop at the open would support that view and might be interpreted as measuring gap in classic technical analysis. We often see measuring gaps in the middle of dramatic third waves and if pre-market weakness continues that may be what we’re seeing today.

If we do not see the specific price action outlined on our DJIA video then the one YM count looking for the end of a five-wave move may give use clues as the the next move. That’s one advantage of looking at both the cash and futures markets and looking at them both from different angles.

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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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