A New STR

The three-wave June-July decline locked in the previous rally from the March low as a complete pattern. Thus, the subsequent rally from July’s low, accompanied as it is by strong momentum and breadth readings, has to be viewed as a second leg within a larger, unfinished post-March uptrend. Given that the March-June rally was quite clearly a corrective structure, it would seem that the overall pattern has become fairly complex. In Elliott Wave parlance, it could be a double-three (or even a triple-three). In “Plain English” that means that two (or three) corrective patterns are connected to one another to make up a larger corrective pattern. (There is no such thing as a quadruple-three.) All of this means that, despite the non-Elliott strength of recent weeks, the pattern from the March low is best counted as a bear market rally.

The above is the opening paragraph of a new Short Term Review that we sent out today to our preferred distribution list (those who have expressed at least initial interest in becoming a future subscriber). If you would like a copy and would like to be put on the preferred list, send an e-mail to wmgallc@gmail.com.

Trend Analysis