Stock Market Highlight #14
End of initial surge down projected by using Elliott Wave concepts
presented in "The $upertrader's Reference Manual".
(COMMENT #s 578, 579)
UPDATED 19980809
COMMENT 1998-578
As well as the market in the previous COMMENT has done, however, it absolutely pales to
some of the stories I'm hearing about how some of you have done with the stock indexes
since the market peaked the day of the "A & P" Points.
UPDATED 19980811
COMMENT 1998-579
1. The chart shows hourly DJIA prices since the all-time high on 980720 and through the
first hour this morning.
2. The "3" point in the chart shows the low reviewed in COMMENT # 568.
3. The horizontal line labeled "500" in the chart is the 50 percent price
retracement level of the 980730 to 980805 decline.
4. If correct, the "2" wave was a SIMPLE correction, the "4" wave a
COMPLEX correction (see "Elliott Wave Guidelines" on pages 290-2 in "The
$upertrader's Reference Manual").
5. It is possible that the "3" wave ended at the "B" point shown in
the chart and that the "4" is but an "a of 4".
6. If such is the case, this morning's low would be expected to form a "b of 4"
wave.
7. A "c of 4" to the upside would be expected next.
8. If wave "4" is complete (as shown in the chart) and the market moves lower,
the next support should evince itself around the 8265 level or so.
9. This low should complete the downward movement from the 980720 high.
10. The low should mark wave "5" of five waves down.
11. From this level, the market should enter an extended upward correction.
12. A possibility, but low probability, is that, from the "4" wave high, the
expected low becomes but a "i of 5".
13. Should such prove to be the case, the market will form a very quick correction and
complete a "ii of 5" wave.
14. The next move would then be a very hard down of greater magnitude of the "1"
and "3" waves so far.
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