Squawk Morning Briefing: Foolish Games

This remains an extremely tricky spot with good looking counts in equity futures looking bearish. At the same time, Friday’s action in the DJIA took out a level that suggested that more upside may be seen before continued selling, even if that upside action is part of a correction. The DJIA only took out that level by a few points and the S&P 500 did not have the same action, but we try to follow what each market is telling us, and taking out that level contains a clear message as discussed int he DJIA video.

What is clear is that we are talking about relative likelihood until we get a move that has solid confirmation, and that still hasn’t occurred. Until then, the market seems to make just about all prognosticators look foolish. The one clear message seems to be that this continues to behave like a topping market intent on confusing the most people before a decline. Whether or not it has actually topped or whether it will do so from higher levels remains unclear with conflicting messages from different markets and even from day to day.

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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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