A Buy Signal?

For what its worth, we had a low yesterday within one of the target boxes posted recently. Of equal interest is that we now have a bullish divergence between price and the RSI indicator at that low. In my work that means we have a buy signal in place on the daily chart right where we've counted a full five waves down.

The attached chart (see arrows) shows how even though price made a new low (closing value) the RSI indicator did not.

I would view any rally from here as a "bear market rally". Also known as a counter-trend rally; which tend to be swift and at times quite dramatic.

Quick Elliott Update

Let's start the new month by reviewing the short-term Elliott Wave count. Turns out the low last Thursday was just the end of wave iii. Still watching the target "boxes" from the previous post.

Fibonacci and Gann Work

The bounce from last Thursday's low was much weaker than I expected but it doesn't matter - as I am not touching this one with a ten foot pole! The Elliott count on today's chart reflects the recent events. The chart also shows two support areas (boxed) right under the market based on Fibonacci and Gann principles.

The fifth wave down might end in one of these areas either today or Wednesday/Thursday.