Noon Update- SPX, HHS, AMD


The S&P 500 Large Cap Index (SPX) - Daily chart
Today I want to go over the wave count on the daily chart for the SPX. First I shall assume that the wave count is labeled correctly and that the recent bottom at 1268.40 is in. Also assuming that wave I and ii is in, then we are setting up for the wave iii move which is the fastest part of the move. The distance between wave iii and iv is a 30 point pullback which should not overlap waves i and ii. What I am trying to illustrate is that the market is prime for a parabolic up move to wave iii. With this type of pattern we should expect broad participation throughout the entire market.

Harte Hanks, Inc. (HHS)
The chart of HHS illustrates a wave 2 to wave 3 up see how fast and impulsive it looks. Elliott wave determines speed. Stalling at the top is a warning sign that the top is in. However, iIf there is stalling at the bottom it is bullish, as long as no overlapping of the prior 1 and 2 waves occurs. Furthermore, prolonged sideways consolidation / slim jims are OK because it means that when a stock does break out of the channel it will move fast because people have been building a position for a counter trend move. HHS is an example of this.

Advanced Micro Devices, Inc. (AMD)
On the chart of AMD you can see that the month long sideways move at the top was bearish. This sideways move was then knocked down in one day and continues down in a 5 wave move. For wave 5 to be put in it should not drop below $26.07. There is no reason to sell and yet there is no reason to buy. There is no reason to buy until wave 5 or wave C is in. As long as the uptrend line is intact the position is fine.