It pays to keep on top of the stock market's unfolding Elliott wave pattern and other key indicators.
The reason is simple: the dynamics of the market can change in a flash.
As the Wall Street classic book, Elliott Wave Principle, by Frost & Prechter, noted:
There are often times when, despite rigorous analysis, there is no clearly preferred [wave] interpretation. At such times, you must wait until the count resolves itself. When after a while the apparent jumble gels into a clear picture, the probability that a turning point is at hand can suddenly and excitingly rise to nearly 100%.
A key word in that excerpt is "suddenly." In other words, a skilled Elliott wave analyst who studies the unfolding chart pattern every trading day will likely see this "sudden" clarity. Those who make assumptions about the market from analysis that is weeks or even days old will miss these sudden turning points.
The same applies to insights gleaned from other indicators.
Here's an example from our Sept. 9 U.S. Short Term Update (wave labels available to subscribers):
The stock market was up sharply on Thursday, September 5, but the day closed with just two stocks up for every one that was down on the NYSE. The stock market closed higher still on Friday, September 6, but the NYSE advance/decline ratio was weaker than Thursday, with 1.28 stocks closing higher for every one that closed lower. On Monday, September 9, the DJIA closed higher by 38 points and the NYSE a/d ratio closed at 1.56:1, only slightly higher than Friday. The question is, do the market's internals suggest a stock market that is soaring to new highs or a market that is in the late stages of a rally?
One interesting development is the swift reversal in the 10-day NYSE Trading Index, shown on the chart.
That issue of the Short Term Update goes on to discuss what this "swift reversal" may mean.
It will be important to keep an eye on the market's internals in the immediate days ahead.
You can do so without any obligation for a full 30 days. Look below for details...
U.S. Stocks and the "Next Big Jolt of Volatility"
On Sept. 6, our U.S. Short Term Update said that near the end of the trading day...
"...the CBOE Volatility Index actually drifted below 15 for the first time since August 1 (closed at 15.02)."
Yet, our Elliott wave expert was also quick to say when he expected volatility to pick back up.
Learn what our U.S. Short Term Update says about the "next big jolt of volatility."
You can do so without any obligation for a full 30 days!
Look below to find out how...
Your Financial Forecast Service Team Helps Put YOU in Control of the Market’s Trends and Turns
Your Financial Forecast Service guides -- three of the best-known market analysts in the world:
- 1. Robert Prechter, Author of 16 market-related books, New York Times Best-Selling Author and Editor of Elliott Wave Theorist
- 2. Steven Hochberg, Editor of the Short Term Update and Co-editor of The Elliott Wave Financial Forecast
- 3. Peter Kendall, Author of The Mania Chronicles and Co-editor of The Elliott Wave Financial Forecast
As featured in:
You can be ready for risks and opportunities that catch most investors by surprise
Risk-Free, Start Your Subscription Now
for 1 month of unparalleled market insights