After opening today at 355.71, just .50 above the daily 89 EMA at 355.21, by 12:35 pm BIDU continued to play moving average pinball by spiking all the way up to 388.20, just .70 above the hourly 377 EMA at 387.50 (using a Worden TeleChart data feed). Turnover ran at 593% of the 3 month daily average today as price gapped decisively below the trendline that connects [iv] of 3 and 4. This marked change in temperament within BIDU’s price action is a textbook example of how not only Elliott Wave Principle but also Elliott Wave Theory can be successfully employed by technical analysts in anticipation of long-term inflection points.

** Designer note ** Data feeds between charting platform providers are notoriously different and as a result you may not register the same values across platforms and feeds. This is especially true for exponential moving averages (EMA’s). An EMA includes a smoothing factor in addition to including all of the price series data for the entire life of the trading instrument under analysis, where every single bar’s data affects each new calculation. Ultimately, the weighting assigned to each bar of EMA data continually shrinks as a new average is continuously calculated; yet, each individual datum point captured remains forever part of a derivative function within the EMA. For this explicit reason, slight differences between varying data feeds continually expound upon themselves, amounting to slightly different values for long-term interval periods of time, tick or volume (especially time) across charting platform providers.

With a Tweezer Top Bear Engulfing candle shaping up on the weekly and our personal favorite candlestick pattern, a High Wave, currently established on the monthly profile, we at Fibozachi suggest shifting any previously long-focus towards one of selling corrective upward rallies. All that said, while we believe that yesterday marked an historic inflection point for shares of BIDU, anything is certainly possible and our opinion is just that.

After opening today at 355.71, just .50 above the daily 89 EMA at 355.21, by 12:35 pm BIDU continued to play moving average pinball by spiking all the way up to 388.20, just .70 above the hourly 377 EMA at 387.50 (using a Worden TeleChart data feed). Turnover ran at 593% of the 3 month daily average today as price gapped decisively below the trendline that connects [iv] of 3 and 4. This marked change in temperament within BIDU’s price action is a textbook example of how not only Elliott Wave Principle but also Elliott Wave Theory can be successfully employed by technical analysts in anticipation of long-term inflection points.

** Designer note ** Data feeds between charting platform providers are notoriously different and as a result you may not register the same values across platforms and feeds. This is especially true for exponential moving averages (EMA’s). An EMA includes a smoothing factor in addition to including all of the price series data for the entire life of the trading instrument under analysis, where every single bar’s data affects each new calculation. Ultimately, the weighting assigned to each bar of EMA data continually shrinks as a new average is continuously calculated; yet, each individual datum point captured remains forever part of a derivative function within the EMA. For this explicit reason, slight differences between varying data feeds continually expound upon themselves, amounting to slightly different values for long-term interval periods of time, tick or volume (especially time) across charting platform providers.

With a Tweezer Top Bear Engulfing candle shaping up on the weekly and our personal favorite candlestick pattern, a High Wave, currently established on the monthly profile, we at Fibozachi suggest shifting any previously long-focus towards one of selling corrective upward rallies. All that said, while we believe that yesterday marked an historic inflection point for shares of BIDU, anything is certainly possible and our opinion is just that.

I wouldn't call it a 1 to 1 relationship but I would be watching for resistance and a steeper pullback in the NASDAQ and QQQQ from here as a more likely probability than continuation of this massive run-up without a meaningful pause.

I'll try to follow-up with a post on the NASDAQ.