Squawk Morning Briefing: Preparing for Expiration

They used to say that gymnastics judges were hesitant to give out the highest scores to early competitors so that they would be able to award higher marks should a subsequent gymnast put in a better performance. Perhaps we should have taken a lesson from that before referring to Wednesday’s U. S. equity market decline as “dramatic.” It was an impressive sell-off but it leaves us searching for words to describe Thursday’s more impressive follow-through.

With quadruple witching upon us today could turn out to be wild. Although it seems that whenever we anticipate crazy action the market surprises us with calm markets. In today’s videos we prepare ourselves for what might come and what sorts of price action would shift our attention to various scenarios. Today is likely a good day to give the market time to prove itself as very short-term moves are often misleading during expiration. Focus on the broader patterns and if we don’t see clear moves that suggest one larger pattern or the other then it maybe best just to let things settle next week.

In the Euro price has fallen below the Voodoo snow line just in the few minutes since we recorded our video. So far the move has been sharp and if it continues swiftly then it may continue to suggest further downside. However, force it to continue showing third-wave type action as described in the video if maintaining a bearish stance.

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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:

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