My previous monthly posts (Aug-Oct) showed the expected path upward in Wave 5 from the 2009 bottom. Last month's post zoomed to the mid 2019 wedge formation. As anticipated that wedge/triangle formation resolved to the upside (see Oct post). Some will expect a re-test before further market advance while others will expect a failed breakout, thus fakeout.
This month's post builds on the prior months by emphasizing what Elliott Wave suggests for wedge/triangle shaped consolidation. As mentioned then, exit is in the direction from which the formation was entered, thus upward. I'll now add that Elliott Wave suggests the destination is similar to the widest (and earliest) part of the formation, or the area at the triangle's entry. In today's case that projects to an area near 3150-3225, with potential to reach 3300. I've illustrated the target area in this month's chart. Those areas also relate to important Fibonacci levels to suggest future caution (too early to write about that now).
The yellow arrow at November 1 is the area of breakout from the triangle (orange). The upward target area is marked with a cross (red) along a dotted line path (white). Timing is roughly through year-end 2019 into early 2020.
Patience has been rewarded for bulls as the next suggested phase of 2019's mid-year consolidation unfolds. Global easing of monetary policy and new NYSE A/D heights provide supporting backdrop. The declining pattern for MACD/PPO peaks has now been broken, too. That divergence as markets climbed gave bears hope, but the recent trend break should cause them to reassess, if wise.
This month's post builds on the prior months by emphasizing what Elliott Wave suggests for wedge/triangle shaped consolidation. As mentioned then, exit is in the direction from which the formation was entered, thus upward. I'll now add that Elliott Wave suggests the destination is similar to the widest (and earliest) part of the formation, or the area at the triangle's entry. In today's case that projects to an area near 3150-3225, with potential to reach 3300. I've illustrated the target area in this month's chart. Those areas also relate to important Fibonacci levels to suggest future caution (too early to write about that now).
The yellow arrow at November 1 is the area of breakout from the triangle (orange). The upward target area is marked with a cross (red) along a dotted line path (white). Timing is roughly through year-end 2019 into early 2020.
Patience has been rewarded for bulls as the next suggested phase of 2019's mid-year consolidation unfolds. Global easing of monetary policy and new NYSE A/D heights provide supporting backdrop. The declining pattern for MACD/PPO peaks has now been broken, too. That divergence as markets climbed gave bears hope, but the recent trend break should cause them to reassess, if wise.