Goal? Try and Identify When the C-Pulse is Complete

The cash S&P500 hesitated on Thursday as it formed an “inside” day. This price action provided little new information. Note that once again support was provided by the short moving average.

What can today’s action reveal? A low today less than Wednesday’s will substantially increase the odds that the C-pulse high is in. Failure to go below Wednesday’s low means that the bulls have a chance to prove their mettle – but need to rally us above Monday’s high. In either event the model’s key points for now are 1312.81 and 1396.02. I still think we will see the former before the latter.

There may be another technical use for the price pulse model. The signal points (red and green arrows) may identify the completion of Elliott Waves; which are drawn in purple on today’s chart. Intriguing is that the price pulses may also indicate which waves are impulsive and which are corrective. For example, the waves from Oct. 11 to Nov. 26 and Dec. 11 to 1/23 are composed of five price pulses in an “impulsive” fashion. All the other waves (not counting the current up wave which can not yet be claimed as complete) are composed of three pulses indicative of corrections. Even with this information it is not easy to count waves.

What is the Elliott sequence of these five waves? There are three choices. Is it 1-2-3-a-b? Perhaps a-b-c-x-a describes it best? Or maybe it’s a-b-c-a-b? In future postings I will explore the possibilities further.