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

SP500

Quiet markets today with NFP report looming close. We’re continuing to hold the lows established on Tuesday. The wave count remains as is, and the expectations are for a low to be nearby. I have seen a slight improvement in the number of stocks above the 20-day and in the small caps as well.

Look at the second chart below and how we traded over the past three days. After we sold off Tuesday pretty much the whole day, for the past 2 days, we had early morning weakness followed by buying for the rest of the day. I think this type of behavior is suggestive of strong bids coming in trying to hold the market above 4200.

Yields have been on a slight pullback as well showing how sensitive the market is to their moves.

Take a look at the USD since Oct 3rd

Nasdaq100

The daily Nasdaq100 is in a wave ((iv)) correction following a very strong first half of the year. Once this correction is completed, wave ((v)) will take us to a new ATH.

Dow30

A look at the larger picture in papa Dow.

US Dollar

You’ve seen it already but here is the zoomed-out version. Offers have been coming in well for the past 2 days. The weekly charts have a decent chance of creating a nice shooting star if we get further selling tomorrow.

Gold

Hey now Gold. Was that an a , triangle b and then c? Into the previous 4 and just above 61.8? Nice cocktail here, making upside bets not a bad idea.

Bitcoin

Previous comments stand on BTC. Below 26k and the bearish narrative resumes.

As I said in the video last night and comments, when risk rallies let’s watch what BTC does. It’s been acting well. I think that’s a great sign and if we can clear 29k, we should accelerate higher. The retest of the broken trendline held, so now she just needs to deliver upside. Remember if this is a wave 2 flat , BTC is poised for 50k in the next wave.

See you next week- trade well,

Cris

email: ewcafe@pm.me