Elliott Wave 5.0 "Reboot"

Monday, January 11, 2016

E-Mini SP500 Intraday March Contract Review.


It is now very obvious that there are major differences in chart action and therefore the type of waves we get between the cash chart and the any specific month.  There are only 4 months that are created so when March is no longer the busiest month, then June would be the next month that gets traded. 
In the cash charts the E-Mini SP500 never even rallied but has already seen new lows while this March contract has seen a strong rally but is declining, or correcting.

More Elliott Wave analysts use the cash SP500 but it is the March contract that reflects the Forex Units much better.  Cash charts also stop during the night as the specific contract month keeps going. 

I will be using the individual contract months much more frequently as the cash charts distort due to the fact they are not updated during the night. Virtually every stock index I looked at so far only trade in 4 basic months of the year and they are H, M, U, Z (March, June, September, December)


Most of the Intraday charts are good if it is the busiest month, but daily charts offer poor quality waves which I have to change to display them better. The wave I do have can be the start of a diagonal bullish phase, but so far it is still heading down in which a new low could happen. 
This entire decline has diagonal waves in it, which hints that a reversal should happen. 

Everything still fits into an ending diagonal at this time, but if the SP500 creates dramatically new lows then a bigger triangle would be my next option. This would still be a little less than 100 points away.