Objective Elliott Wave provides new alternate wave count pointing equities higher: Wednesday update by Tony Caldaro

The Elliott Wave count for equities may offer a new alternative path that points higher. Analysts I respect are the ones willing to continue open, objective analysis - especially because wave counts can transmogrify, and can be ambiguous enough (especially with corrective waves) to support more than one outcome. As I've said before, fundamentals do matter and technical analysis just gives us great tools to measure how the market's doing, for where it's headed. Which brings me to Tony Caldaro and his Objective Elliott Wave update this evening. He describes in detail an alternative wave count that has merit and should be considered if the S&P 500 exceeds 1070. You'll want to read his full update (site link and updates feed at right). Meantime, here's a quote followed by his hourly and daily Dow charts that show this alternate count (thanks Tony! - his public charts are available from his charts link at his site):

October 07
short term alternate count
There is nothing more difficult than tracking a bear market rally. Just when you think you have it figured out, out of the blue comes a subtle twist. Since Primary wave B looks like a simple zigzag: Major A SPX 956, B SPX 869, C 1080 (+). Then the internal structure of the current Major wave C should be similar to wave A. For more than six months everything was fine, and Major C was simply following the posted wave structure of A, until last week. When the market pulled back to SPX 1041, appearing to end Minor wave 4, but then the rally failed at SPX 1070 and made a lower low. The first reaction was a failed Minor wave 5, or an expanding ending diagonal. Not being a fan of either failed 5th waves, nor expanding ending diagonals, it was time to look for a slightly different alternate count. Project, monitor, adjust when necessary.
Since the drop after Minor 3 SPX 1080 overlapped Minor 1 SPX 1039, the rally from Intermediate wave B SPX 979 no longer looks like five impulsing waves. It certainly appears to be more of a corrective advance. Keeping in mind that Major wave C should be similar to Major wave A. The internal wave structure, including the recent overlap, will also have to fit into the entire wave structure of Primary wave B. We have identified a pattern that fits. If we count Major wave A (SPX 667-956) as a double zigzag, then we can count Major wave C (SPX 869-1080 (+)) as a double zigzag as well.

Since Tony projects some specific price objectives possible with this count, you'll want to read the whole thing. I'm still skeptical of going much over 1080, but remain bullish short-term until the pattern and volumes + technicals help confirm a top.