1 | Page Yesterday I updated my Elliot Wave counts showing that the highest probabilities (70%) were for more upside, even after possible a little more downside (only 8p max). Thus today shouldn’t have been much of a surprise to anybody, as surprises in Bull Markets -as said- more often than not come to the upside. The Elliot Wave counts pointing to the downside were already reduced to 30%, low, probabilities. Not a day late as the market took off today and surpassed the cutoff level of SPX2600 with 1p - set in yesterday’s update - telling us micro-3 is underway, with micro-1 at SPX2590 and micro-2 at SPX2578. (Futures market did tag SPX2570 on Monday night!) The ideal wave tracker table shows the ideal wave targets below: micro-3 in orange, micro-5 in blue. Ideally nano-iii of micro-3 should now reach SPX2610, then nano-iv down SPX2597 (retest of breakout level) and then nano-v of micro-3 to SPX2622-2630. Etc. Table 1. Ideal wave tracker table for nano and micro-waves of minute-v Figure 1. SPX-60min chart. Ideal Fib-extensions show the price targets for micro-3, 4 and 5 (as shown in detail in table 1)
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1 | P a g e
Yesterday I updated my Elliot Wave counts showing that the highest probabilities (70%) were for more upside, even
after possible a little more downside (only 8p max). Thus today shouldn’t have been much of a surprise to anybody,
as surprises in Bull Markets -as said- more often than not come to the upside. The Elliot Wave counts pointing to the
downside were already reduced to 30%, low, probabilities. Not a day late as the market took off today and surpassed
the cutoff level of SPX2600 with 1p - set in yesterday’s update - telling us micro-3 is underway, with micro-1 at
SPX2590 and micro-2 at SPX2578. (Futures market did tag SPX2570 on Monday night!) The ideal wave tracker table
shows the ideal wave targets below: micro-3 in orange, micro-5 in blue. Ideally nano-iii of micro-3 should now reach
SPX2610, then nano-iv down SPX2597 (retest of breakout level) and then nano-v of micro-3 to SPX2622-2630. Etc.
Table 1. Ideal wave tracker table for nano and micro-waves of minute-v
Figure 1. SPX-60min chart. Ideal Fib-extensions show the price targets for micro-3, 4 and 5 (as shown in detail in
table 1)
2 | P a g e
On the S&P’s technical indicator (TI) chart, things continue to improving, as yesterday the A.I. non-ideal buy signal
was confirmed and is now thus back on a solid buy. The MACD however, is still not giving a buy crossover; often
typical for a 5th wave. But price, is still above its 20d SMA and above all trendline support. Thus the trend remains is
still up as it has been for the past days. All in all, the daily chart has now 0 bearish indications as everything is pointing
up and is properly aligned. This is a chart that wants to see higher prices, in line with my preferred count.
Figure 2. S&P daily TI chart: A.I. buy signal continues. Price still above all SMA and uptrend lines: nothing bearish
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The S&P500’s McClellan Oscillator (MO) ended today at +8, up 19p from yesterday’s close and thus confiroming
today’s higher prices. Now more stocks are advancing than declining: Bulls are now in charge. Like yesterday and the
days before, the NDX-MO, NAS-MO and NYMO continue to be positive and to increase. As such, the SPX-SI
([Cumulative] Summation Index of the MO) does remain on a sell, but is starting to point back up. Similarly for all
the other SIs: NYA-SI, NDX-SI, NAS-SI. Except the DIA-SI. Hence, the improvements from the past few days continue.
Today the NYA-A/D cumulative line “for common stocks only” moved even higher -making a new ATH- after already
breaking above the (red) downtrend line yesterday; clearly telling us the markets want to go even higher. As I said
yesterday: “Thus, the A/D lines for the NYA are telling us to expect higher prices as more and more stocks are now
advancing (in line with the improving MO readings); see prior similar setups (orange boxes).” Forewarned is indeed
forearmed 😊
Figure 3. SPX-SI and all other SIs starting o point back up as breadth now positive across most indices. NYA A/D
“common stock” cumulative line made a new ATH today after entering “new uptrend” mode yesterday.
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In conclusion: Yesterday I concluded “Since in a Bull Market (and especially a strong one like this one) surprises come
often to the upside, it’s prudent to continue to look up until proven otherwise (i.e. a break below SPX2557).” Boy did
we get that “surprise” today or what 😊. Despite the somewhat unclear EWT counts, I’ve nonetheless continued to
favor the Bullish options for the market and was at a minimum looking for SPX2595, but ultimately SPX2640s even
after a brief possible dip to SPX2570 and here we are: the S&P already made new ATHs, signaling micro-3 of minute-
v is underway. The later (minute-v) should ideally target SPX2635-2643 barring any unforeseen extensions. Market
breadth continued to further improve today; and the NY A/D cumulative lines made new ATHs today after entering
“uptrend mode” yesterday. The daily TI charts for all the general indices continue to improve, and are solidly on Buy
with very few if any Bearish indications. Thus, for now all the charts tell me to continue to look for higher prices as
the final waves for major-3 are wrapping up. We may get some profit taking over the Holiday; but it should only be
