Monday, November 19, 2012

The post election correction

Last Thursday at mid day I took a quick look at the S&P500 currently about 1347 and was trying to see just where this correction would attract some bids

Our S&P500 weekly chart displays the 5-wave Elliott Wave advance of mid 2010 through mid 2011. This was then followed by a sharp A-B-C correction – otherwise known as a normal intermediate cycle correction. This was followed by another 5-wave Elliott Wave advance (not numbered)

Technically there is support at the 3rd Elliott Wave peak of Nov 2010 (3) and the subsequent recovery wave (B) in June 2011. Note also the 1345 level is also where the rebound from (C) stopped. I also note the NYSE Advance / Decline line never broke down to confirm the break in the S&P500. I think the post election correction is over,

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