In my last article, I was initially looking at a possible ending diagonal on the SPX (bearish wedge to non Elliotticians) but as I re-evaluated price structure in the other main US markets it became much clearer that the pattern in the SPX was not an ending diagonal as I initially thought, but some sort of ugly unorthodox flat pattern.
Although technically the ending diagonal pattern is still valid, but in light of the evidence in other US markets I decided to adjust the pattern to reflect the ideas on the Dow Industrials as well as the Dow Composite.
Bearish IdeaThe move off the March 2009 lows currently counts best as a 3 wave move; I can count a 3 wave move, which in my opinion is very close to a reversal.
Since my last article the SPX has moved just over 50 points, however the angle of the advance looks wrong for the previous ending diagonal idea. As I mentioned earlier, the patterns on the Dow industrials and Dow composite show a much clearer idea, which I think are important clues.
The SPX is slowly coming into a fibbo price time target I have been following. But without a reversal clue, this grind can push higher than the bears can stay solvent. Although we have been following the short term charts higher, it's now I think once again that a possible reversal can be seen, it's this area that an important reaction could be seen.
You can read the rest here: http://www.safehaven.com/article/31974/market-report-clues-from-the-dow-industrials