Friday, December 23, 2016
SPX and RUT: Are Fourth Waves Annoying, or Just Plain Awful?
We have a saying in Elliott Wave, when we Elliotticians gather in whatever places Elliotticians are found. What we say, when we're gathered amongst ourselves, far away from the autograph seekers and the paparazzi, is: "Everybody loves 'em a good fourth wave." Then we mimic a perfect Fibonacci spiral with our thumb and forefinger, and we add: "Not!"
Then we laugh hysterically, because we're easily amused, us Elliotticians.
It appears that SPX has decided to continue its triangle, which was something I noted could happen in the last update, because I've been around this block a few times and I've seen what these sneaky bastage fourth waves can do -- because they hate us, these fourth waves.
RUT has back-tested its black trend channel -- thus far, successfully. Given how far RUT came in such a short time, a minor break back into the channel isn't out of the question. Bulls obviously don't want to see a major break back in:
In conclusion, SPX has continued its sideways grind. The triangle stays on the table as long as 2248 holds, and targets 2288-2300. As an aside, does anyone else find the now-constant play-by-play on "Dow 20,000" to be getting a bit tired? Every day, I have between 50 and 1000 new emails from Marketwatch alone, that all read like this:
Dow Retreats 9/100ths of a Point Farther from 20,000, Oh the Horror
Dow Shakes off 9/100ths of a Point Morning Retreat to Put 20,000 Back on the Table, Huzzah!
Dow Moves Toward 20,000... No, Away! No... Wait, Hang On, We'll Send Another Email in a Second...
Dow to Officially Be Renamed as "Dow 20,000," Thus Finally Rendering This Play-by-Play Irrelevant
Beyond that, I'd like to wish all my readers a happy and safe holiday season. As is now tradition, I'll link to a non-market-related article that I first published in 2013: A Christmas Story -- Reflections on What Matters.
I truly hope everyone enjoys this time with their loved ones. Trade safe.
Posted by PretzelLogic at 4:44 AM