The Daily Drip

Core markets charts updates and commentary

Note: The counts on the right edge are real-time, and they are prone to adjustments as price action develops. Elliott Wave has a fluid approach, is evidence-based, and requires constant monitoring of certain thresholds.

In the counts below, this (( )) = circle on chart

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SP500

The market continues its impressive run upward. Today, the tape was dominated by tech and discretionary, but we had decent participation from the other sectors. You could say we have improved breadth for now. The SP500 gained +0.82%, while the equal-weight RSP gained +0.39%. We are now within 5 points of the 5000 mark. It’s likely a given that the level will get taken out and probably surpassed for a bit before some corrective price action. While it is becoming extremely difficult to argue with such a bullish tape, a few things are worth mentioning and paying attention to for headwinds.

• price hugging the top side of the trending channel

• a 5-wave structure from Oct 2023 lows

• converging trendlines on smaller time frames

• seasonality approaching a weak period

• still persistent breadth issues when you eliminate the large cap names.

• A late fuse on the 85day cycle but still within timelines

• VIX approaching upswing on cycle analysis