Market Map for Jul29
Posted: July 29th, 2009 Author: Mike Korell
Filed under: One-Day Market Map
Comments to ChartsEdge »
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Thanks once again, Mike and ChartsEdge!
Folks - from an Elliott Wave perspective, it's very tempting to think that we're seeing a series of small waves tracing out a 5th-wave completion to the rally from the lows earlier this month. Tony Caldaro's OEW update yesterday mentioned that a 4th wave may have finished, paving the way for a 5th wave in progress, and so if this is indeed happening then there are questions on how high it can reach. Numbers like 990 and 1000 in the SPX are being mentioned. Yesterday we saw another interesting development in our "string" of numbers, with the SPX testing 982 and 972, so why not consider 992? Edging higher is also tracing out what looks like a "megaphone" or reverse triangle, which if nothing else gives us another way to look at trendlines. For that matter, in looking for indications of when the SPX reaches a top - whether it's a near-term top for this rally leg, or something more - we'll need to see more deterioration in the indicators along with a trendline break to confirm it.
The hourly indicators have deteriorated and the daily ones are beginning to, but so far all we can diagnose from that is that momentum is flagging. It's the other surrounding factors - significant Fibonacci levels occurring on the monthly charts, the VIX and the dollar showing signs of life - that make it look potentially more significant.
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