SHORT TERM: stocks open lower but rally, DOW +25
Overnight the Asian markets were mostly higher with only China’s SSEC displaying a loss. Europe started its day higher, but turned about 0.30% lower as the US markets opened. As a result the US market opened slightly lower, but quickly rallied 1446 by 10:00. Bonds are up over 1/4 point, Crude is $1.00 lower, Gold is up $5.00, and the Euro is slightly higher. Support for the SPX remains at 1438 and then 1410, with resistance at 1462 and then 1484. Short term momentum is rising. Not much on the economic agenda this morning, but the FED announced before the open, that it would provide ample liquidity through year end. Best to your trading!
MEDIUM TERM: correction
LONG TERM: bullish.
the ELLIOTT WAVE lives on 
Hi Kostas,
Corrections are often difficult to determine in advance.
Normally we just look for alternation between the waves of similar degree.
The DAX, i.e. had a Primary II zigzag, so a Primary wave IV flat would fit.
Same goes for the FTSE.
The SPX had a Major wave 2 simple zigzag, so an irregular Major wave 4 flat would fit too.
Waiting for the technicals to signal a bottom. Still a way to go!
tony
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Hi Tony. Do u think it is possible that we are still in wave b of the major 4. With this scenario the wave b will be more complex than the one we have seen yet, and only a and b of this are almost completed. I do know if this scenario has possibilities for you, but if this correction unfolds like the scenario you show in the diagrams, this correction for some markets i watch, will not alternate the previous correction. I think the best example is DAX. This wave IV correction, under the scenario you have in use, will be almost the same with the wave II. Do u think that we should have in mind a more complex wave b?
Thanks, Kostas.
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