Another small range inside day sees the Elliott wave counts very slightly adjusted, but this makes little difference to the short term expectation and no difference to the mid or long term expectation. The breakout direction is still expected to be the same.
With New York closed because of Labor Day, the markets were quiet.
A very small range day closes as a small inside doji candlestick, which does not alter this analysis.
The short term Elliott wave structure and strong volume for Friday indicate the direction for next week.
An outside day closes green, and the balance of volume is upwards. This fits expectations for the main Elliott wave count.
Another slight new low today remains above the invalidation point. Two short term scenarios are presented today.
The upwards swing has been proven by price to be over earlier than expected.
Price remains range bound.
A little more downwards movement to a target at 1,318 – 1,317 was expected before a reversal. Price moved lower and reversed 2.84 below the small target zone.
Last analysis expected a consolidation to continue. A long legged doji closed, which moved price essentially sideways as expected.
A breach of the channel on the daily and hourly Elliott wave charts indicates the alternate daily chart is more likely.