Squawk Morning Briefing: Caution Recommended — Still

Everything we see continues to suggest topping action in U. S. equities. Nevertheless, we discuss two observations in our videos that impact our outlook:

1. It appears likely that the high isn’t yet in.
2. The next short-term trend may be down.

So while we are waiting for a clear trend to assert itself, we need to be aware that even if it is down it might only be a short-term move.  This is the direction we expect but it means that we need to be quite cautious for several reasons.  First, we know how tricky topping action usually is to begin with; and, secondly, there remain reasons to think that upcoming action may be volatile.

We want to pay attention to the signals mentioned in our videos to assess direction.  But it may also be wise to play things light or until a clearer long-term trend asserts itself or even sit things out.

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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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