"Exhaustion" an Elliott rising wedge gives form to likewise should be in evidence through technical states displayed coincident with its development. We saw this via the NYSE's new 52-week high-low differential. Might we anticipate something of the same display via the 10-day moving average of the NYSE's advance-decline differential above? Here we might suppose an Elliott rising wedge's "exhaustion" would be objectively displayed were this measure to sink to its lowest level since October 2011 as wave b of 3 of (c) continues its formation.
Such a prospect, then, finds the market at near-term risk of sinking toward the lower end of its trading range of the past six months. Indeed, the above measure rather suggests the market is likely to be imminently confronted with weakness. Still, we can only wonder whether the greater bulk of it might be delayed until the New Year.
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