Squawk Morning Briefing: Contradictions.

No doubt about it, today is shaping up to be a critical day in U. S. Equity markets. If we view Elliott waves as a language that markets use to communicate with us then, the move down from early August seems to be a clear message that a downtrend is being established. The message from the subsequent move up isn’t yet complete, but we’re starting to see some clues that something doesn’t quite fit.

It is like hearing one sentence and developing expectations for what will come next. Now that we’re listening to the next sentence, it is starting to sound as if the second sentence might contradict the first. If the market contradicts itself then we’re left to decide which message is the correct one. At the moment, we’re just trying to complete the second sentence in our heads, so it we could be wrong. But it is time to take some sense of warning that the initial indications might be wrong. More on this in our videos and over the coming days.

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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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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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