Tuesday, April 6, 2010

4/6/10 - SPX AM Update

It appears the market is still working on that thrust. However, it does not appear to be "thrust-like".

Should price hit the thrust target though, keep the following underlined text in mind from Elliott Wave Principle, 10th Ed., Pg 51:

"In the stock market, when a triangle occurs in the fourth wave position, wave five is sometimes swift and travels approximately the distance of the widest part of the triangle. Elliott used the word "thrust" in referring to this swift, short motive wave following a triangle. The thrust is usually an impulse but can be an ending diagonal. In powerful markets, there is no thrust, but instead a prolonged fifth wave. So if a fifth wave following a triangle pushes past a normal thrust measurement, it is signaling a likely protracted wave."


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