3:00pm – A divergence is registered in the hourly S&P 500 index – higher prices, but lower momentum.  This is the first clear signal since the ‘dancing with the devil’ early March lows.   Beginnings of a profit-taking shift?

9:30 am – Markets open right at the wolfewave target measurement from yesterday’s setup.

12:20 update – Slow ooze lower into the lunch hour, a completed 5-wave down sequence at smallest time scale.  Watch for a counter-trend lift to complete during this temporary interlude.

1:20pm – As expected, an a-b-c retrace completes over lunch

3:05pm – Small overlapping structure suggests that there may a lift from these levels.  A place to flip long with a tight stop.

3:50pm – A quick lift, followed by a plunge to match Monday’s measurement.  Tuesday/Wednesday was a small interlude to form the bear flag.

Oddly enough, the hourly chart ends with a slight positive divergence (lower prices, higher momentum).  The last time this was seen on this time scale was at the previous Elliott wave 1 lows around January 21.  Is this perhaps a clue for Friday’s action?

11:45am – ES futures trade right thru the 845 pocket and gartley target mentioned last night.

2:00pm update – first signs of a divergence on intraday basis.  Start to look for wave overlap.

2:30pm – OT flip

3:00pm – first overlap series and wedge / wolfewave possibilities showing.

3:22pm – ww setup

I like the Advanced GET package and have been following the postings that the staff does to illustrate the strengths of the program.  At the heart, it is based upon Elliott Wave Theory and uses different trend-following or counter-trend setups.  What you will notice is the 5,35 oscillator often used in their charts.

JCI triggered a counter-trend (type 2) buy setup today on a wave 5 termination and channel breakout.  There is a positive (bullish) divergence of prices vs. momentum, in this case, lower prices on higher momentum reading.

Here is the same chart showing the setup while enabling the ‘MACD oscillator’ feature on this website.  If you are scanning for similar opportunities, you can review the symbols grouped  in Technical Patterns >> Bull Divergence or Bear Divergence.