Squawk Morning Briefing: How Big a Bounce?

One of our laments throughout most of the DJIA’s decline from September highs is that there hasn’t been a significant bounce which we can use to try to identify the wave structure. We can now dispense with that worry. How high it might go is the next question, and without being able to call the move down clearly impulsive, it leaves open the possibility of a move to new all-time highs. At the same time, it is possible that the high is in from September and we will continue to head lower after this immediate bounce is complete.

The nature of this immediate bounce should tell the story. The one thing which is clear is that the move up from Wednesday’s low appears impulsive and therefore suggests that we will head even higher after a corrective pullback. How much higher will help determine the broader picture. Full details of the likely scenarios are in today’s videos.

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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:

• 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.

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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.

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