Interesting comparison of various sub-markets from the 2007 top to the March low. All three appear to have 5 complete waves down. The VLE did not make a new low on wave 5. This could be considered wave 1 up but since all the other markets didn’t really bottom until March, I go with the majority opinion.
The QQQQ is behaving as expected with price respecting the 1:1 Gann Angle last week.
The Russell 2000 small and mid-caps have been very weak since October. But price is currently above the 1:1 ascending Gann Angle and in good position to continue moving higher after a pause.
The chart of the VLE uses the January low which makes current price action bearish - below the 1:1 ascending Gann Angle. But since a preponderance of the evidence shows the low in March, this chart is really the most bullish due to wave 5 stopping short of a new low. I will continue to chart it with the actual low in case some else is going on. But my opinion at this point is that the VLE (total market) is more bullish than larger weighted indices. Using the March low as the end of the range would make the chart low very similar to the RUT chart.
Charts courtesy of Stockcharts.com
Keep in mind that the VLE did not confirm the October high and the market came down. Now the VLE is not confirming the move down. I continue to expect a move down from June to October. But until the VLE makes a new low I will expect five waves up after the October low.
Tags: Elliott Wave Analysis · Gann Fan · QQQQ · RUT · Square of Range · VLE2 Comments
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[...] on the retrace working off the long term move up. This, along with the Value Line Index (VLE) discussed last weekend gives me a much better feeling about the market long [...]
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