The SP500 Index (SPX) bounced off the 1440 level which is 360+90 degrees from the March low and at the 1:1 descending Gann Angle as discussed in this weekend’s Outlook. How long this will serve as resistance remains to be seen.
Meanwhile, the Dow Jones Transportation Index (TRAN) made a new high - which is very bullish. Again, we must wait to see if this move is a bullish A-B-C correct (with the B wave higher than the end of the previous wave 5 high). Or if this is the beginning of wave 5 after a wave 4 correction. My “guess” is a bullish “B” wave but we will find out soon. If price continues onward and upward then I have guessed wrong. Either way, this wave started at 1/8 the time of the base square and is a square out at some level.
I read a lot after the market closed about a non-confirmation by the Dow Jones Industrials (INDU) which is very silly. Sure there needs to be a confirmation. But saying that it didn’t confirm today makes it bearish is just a bunch of gibberish.
Chart courtesy of Stockcharts.com
Post Modified: July 3rd, 2008 at 12:28 am
Tags: A-B-C Correction · Dow Jones Industrial Average · Elliott Wave Analysis · Square Out · Standard and Poor's 500 (S&P500) · TransportsNo Comments
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