Momentum Divergence and Elliott Wave Mark Intraday High June 11

Jun 11, 2009: 2:42 PM CST

I’m going out on a limb here and saying that the intraday high for June 11th is in place, thanks to a Negative Momentum Divergence and Elliott Wave “5th Wave” Terminal Target.  Let’s see these on the chart before today’s close.

Today ‘felt’ like a Trend Day and price broke above the key 950 level on the S&P 500 but we’ve set-up a possible non-confirmation that might prevent you from getting aggressively long at this level.

A clean 5-wave Elliott Progression (5-waves) has formed (with each wave fractalizing properly) and the final fractal 5th wave seems to be in place.

On the S&P 500 Index itself, you can see a doji (or a evening doji star) has formed at the highs just after 1:00pm, both of which are bearish reversal candles.

A negative volume divergence has set-in as price crested to new highs above resistance.

The Negative Momentum Divergence is plain, and highlights a key non-confirmation of the day’s highs.

The day has yet to close so we still could see a run-up off the EMAs for support, but from what I’m seeing now, odds favor a move down  with the intraday high just above $96.00 on the SPY as being the high of the day so far.

Let’s see how it plays out into the close.

Corey Rosenbloom, CMT
Afraid to Trade.com

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12 Comments

12 Responses to “Momentum Divergence and Elliott Wave Mark Intraday High June 11”

  1. Adrian Says:

    Great analysis, thanks for setting up the site and offering your opinion. Im in the early stage of the learning process and your opinion is much appreciated.

  2. Adrian Says:

    Just looking at some charts and on some of them price can continue to rise with a declining momentum indicator 12 on it. I know you were looking at price to confirm the reversal but which momentum indicator and to which setting were you using.

  3. Patrick Says:

    What´s your wave count methodology? I get the jist that you´re counting fractals on a time-frame, but how do you filter them?

  4. Corey Rosenbloom, CMT Says:

    Right – there's no guarantees that any indicator works perfectly – in this case, the oscillator gave a valid signal with followthrough as expected.

    It's the 3/10 Oscillator which is created by typing 3, 10, 16 into your standard MACD settings.

  5. Corey Rosenbloom, CMT Says:

    Patrick,

    I'm concerned with the fractal structure and mainly looking for the powerful impulse of the 3rd wave which allows me to buy the pullback after we come into support on the 4th and then short after I feel the 5th wave has run its course.

    I treat Elliott intraday no differently than any pattern like a head and shoulders and I don't have the time to be precise in real-time – I'm looking for the structure/form of the price pattern and seeing if there are other trades (flag, candle, divergences) that confirm what I'm seeing.

  6. mark Says:

    hi corey,i wish i would have veiwed your site today, i jumped on some spy calls yesterdaybefore the close, was smiling on a double plus today , was counting the waves , and new we were in a abc after a while , long story short i got out at about break even after the correction, june calls, did not like the fact that goog and aapl were red all day . i do like this elliot stuff , cant wait as time goes on and i can read them better in real time also, question, do you believe primary 2 is almost over and that we head back down soon?

  7. panepon Says:

    Thank you for your advise every time.
    But I sill wonder When we should enter long at today's intrady movement?
    Appreciate your reply.

  8. panepon Says:

    I mean I need specific price and time like enter long at about 95.30 dollars at
    12:30pm

  9. JeffreyLin Says:

    the wave 5 high also a “failed new high” on the daily chart as bulls unable to keep the market “up there” in new-highs territory.

  10. Bob Says:

    Awesome example… nice clean 5 wave pattern culminating in a two bar reversal. And, the MACD showing the move off the lows into and a three wave push, with the last wave diverging from price. Clearly price had to pull back.

  11. JeffreyLin Says:

    the wave 5 high also a “failed new high” on the daily chart as bulls unable to keep the market “up there” in new-highs territory.

  12. Bob Says:

    Awesome example… nice clean 5 wave pattern culminating in a two bar reversal. And, the MACD showing the move off the lows into and a three wave push, with the last wave diverging from price. Clearly price had to pull back.