Elliott Wave Chronicles – Index – 11/11/23

Brief analysis of the last report:

In the previous report, I concluded that the correction should be minor due to the bullish weekly momentum. The probable ABC correction of the ((4)) minute of the A wave minor degree was very brief, starting after the opening on Wednesday and concluding by the end of the day on Thursday. This correction culminated in an impressive Friday for the probable wave ((5)) at the minute level, which could be considered the A wave of a minor degree.

Index momentum

Weekly: The Stochastics indicate a bullish trend across all indexes.

Daily: The Stochastics are currently in the overbought (OB) zone and have crossed for a potential reversal. A probable correction for the minor B wave might be on the horizon early this week and could last for a couple of days.

Nasdaq, S&P500, Dow-Jones

240min: The momentum is currently bullish, but the Fibonacci 0.786 level from wave (1) at the intermediate degree are close and suggest a reversal soon. The daily momentum suggests that we are approaching a potential reversal. It appears we might be reaching the conclusion of the A wave at the minor degree; a reversal could likely occur at the beginning of this week.

What next:

The daily momentum has shifted to bearish, and it seems we might be approaching the A wave, possibly within the early part of this week. Let’s observe what unfolds, particularly on Monday. One of the most important rules in trading is acknowledging that the market is always right. It’s crucial to let the market dictate its direction, and our actions should be confirmed by its movements. If the market confirms our analysis, great. If not, it’s essential to adapt accordingly.

My suggestion of Trading:

On Monday, let’s be patient and assess the market. There will likely be opportunities in the afternoon for trading, and I prefer not to risk losing money on the first trading day of the week. We’ll observe the market dynamics during the morning.

By Tuesday, we might receive confirmations or indications regarding the potential new short trend. However, as mentioned last week, I’m not enthusiastic about trading during the B wave. It’s possible that I’ll wait until the C wave for a new impulse before considering significant trading actions.