Hopefully everyone is enjoying the Holiday weekend and March Madness. Instead of the weekly Elliott Wave post this week zooms in to detail with a Butterfly for the holiday. Harmonics are an excellent way to identify critical turning points and help manage risk at target and stop locations. Having price level objectives and using discipline are critical for navigating through uncertainty.
Nothing much changed from last week's Elliott Wave posting (if you can call Facebook and Trump's Amazon tweet nothing) so build on that with this week's details (see last week's write-up for reference). Anticipation is for the trend to carry higher, but with caution. An upward move could be shallow and followed by a threat of reversal and a lower low. If that happens it is significant and suggests re-positioning for further decline. Even if not shallow, wherever the targeted high is reached is a significant turning point (see Butterfly's point "D").
The support at 200d sma (2589), the red trendline (point "C") and low level of MACD/RSI (green arrows) all suggest an upward move is likely. The blue horizontal line is a Fibonacci level (.786 at 2675) that nicely dissects the entire corrective wave 4. Note the flat activity in December atop that Fibonacci line (additional support). With an upward move from Friday's close it is vital to watch what happens at the 2675 area. Whatever happens will be significant for what comes next at this major junction.
Meanwhile, enjoy the holidays and March Madness as we turn to April.
Nothing much changed from last week's Elliott Wave posting (if you can call Facebook and Trump's Amazon tweet nothing) so build on that with this week's details (see last week's write-up for reference). Anticipation is for the trend to carry higher, but with caution. An upward move could be shallow and followed by a threat of reversal and a lower low. If that happens it is significant and suggests re-positioning for further decline. Even if not shallow, wherever the targeted high is reached is a significant turning point (see Butterfly's point "D").
The support at 200d sma (2589), the red trendline (point "C") and low level of MACD/RSI (green arrows) all suggest an upward move is likely. The blue horizontal line is a Fibonacci level (.786 at 2675) that nicely dissects the entire corrective wave 4. Note the flat activity in December atop that Fibonacci line (additional support). With an upward move from Friday's close it is vital to watch what happens at the 2675 area. Whatever happens will be significant for what comes next at this major junction.
Meanwhile, enjoy the holidays and March Madness as we turn to April.