Squawk Morning Briefing: Waiting for Backup

With our limited knowledge of police procedure from television dramas we know that one isn’t supposed to go charging into a building with armed suspects without waiting for backup.   At least, that’s what we’ve been led to believe all these years.   Nevertheless, sometimes the bold, brash hero will ignore that procedure and go rushing in much like bullish and bearish traders have tried to do the last few days by rushing into equity futures positions before the open.  Some days they were long and some days they were short.   Many days recently they were reversed.   That wasn’t so on Wednesday where they bought before the open and ended the day positive.

This morning, however, futures are mostly flat.   One might think that a success would embolden the bulls but it seems that so close to prior highs they want to know that if they go charging yet higher that others will be by their side.   They are waiting for backup.   Likewise, bears may be anxious to jump in, but seem unwilling to do so without some indication that they’re not wandering into a trap.

So that leaves us waiting for some catalyst to drive markets one way or the other.   There are nearby levels both up and down that could have lasting long-term implications for the wave structure so what they do in this area is important.   We update these scenarios in today’s videos.

Read the Rest Now

The rest of this article is available to subscribers to the Elliott Squawk newsletter. Subscribers can login here to view the update. If you would like to receive this content, signup now for immediate access.

The Elliott Squawk Newsletter

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?

Markets Covered:

Each day Elliott Squawk will update the outlook for the following markets:

• The Dow Jones Industrial Average
• YM e-Mini Dow Futures
• The S&P 500
• The EUR/USD cross
• The U.S. Dollar Index
• 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.

At the end of the day Squawk subscribers will receive a brief market recap that summarizes how the day’s events compared with expectations and what issues are likely to be analyzed in the following morning’s Elliot Squawk.

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.

To receive daily Elliot Squawk updates and get immediate access to this article and the entire archiive signup now.