A Change of Pace - Price Pulses!

Yesterday was a down trending day but the bulls say “forget that”. Look at the futures this morning! Soaring. Melt up? But …. No change as far as my analysis is concerned. I can’t and won’t chase this.

For a change of pace I will be presenting a series of price pulse charts over the coming days. Today’s chart shows the Level 4 action, and that we are currently in an upward moving alpha pulse from the July low. This chart is in a bullish position as it stands and has been so since crossing the blue trend line in the Spring.

In terms of an Elliott Wave count (I find the price pulses work well in identifying Mr. Elliott’s waves) the y-z-alpha sequence up from the March 2009 low corresponds to an A-B-C zigzag pattern. Note that the pulses don’t always correspond in this one-to-one fashion.

Since the pulses build upon each other I will present the Level 3, 2 and 1 price pulse charts over the next few days. This way you can see what they are saying about the future of the cash S&P500. I will most likely jump to the short-term Level 1 tomorrow.