Monday, January 24, 2011

S&P 500 ~ Elliott Wave Count ~ 24 January 2011

The SPX closed higher today failed to break the resistance at 1291 though, so, the market keeps everyone guessing whether the top is in or not.

Over the past three days some triangle-ish pattern was forming, thus a break above 1291 will very likely lead to new highs, possible objectives are 1300 and 1313.

I don't expect prices to go higher than 1313 though. As mentioned last weekend, tops are usually a process which take one to two weeks to form and so far it looks pretty good.

While the SPX can't really decide whether up or down the other two indices took position:

The Nasdaq is well off its rally high and hasn't even retraced half of the down move yet:

It looks like a flat is forming, so, if the 2725ish area holds the target for the next move is 2645ish.

The Dow on the other hand is making new highs every new day. It isn't even showing any sign of weakness. And by the way, the last time it closed lower one third of a percent or more was back in November 2010!

So, the Nasdaq is saying down, the Dow is saying up, one is lying... which one? We'll hopefully find out soon ; )