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Sugar Futures: Simple Move Makes for Big Changes
A violation of even one of Three Rules of Elliott can have dire implications for a market's trend.
Never underestimate simplicity. Simple can be beautiful, powerful, and in the case of Elliott Wave International's June 17 Daily Futures Junctures, “awesome.”
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The entire foundation of the Elliott Wave Principle is based on three simple rules:
1) Wave 2 can never exceed the origin of Wave 1
2) Wave 3 can never be the shortest wave
3) Wave 4 may never end in the territory of Wave 1
Simple? Absolutely. And these simple rules can be enough to produce Elliott wave counts – or alter them if the market evidence changes – as EWI's own Jeffrey Kennedy shows his readers in the June 17 DFJ.
In Chart 1 [seen below], what I was previously labeling wave (4) has move into the price territory of wave (1). As you know, this violates one of the three cardinal rules of the Wave Principle.
This simple fact alerted Jeffrey that something big was occurring in Sugar and prompted him to make a sizable change in his previous analysis on this market – a market that he highlighted previously both in his June 13 Weekly Wrap-Up and the June Monthly Futures Junctures.
It’s important because it set the stage for what I believe will be a month’s-long advance…
To find out what this rules violation means for Sugar in the days and months ahead, and to learn about Jeffrey's exact new price targets for Sugar, read the June 17 Daily Futures Junctures online now – risk-free, as always.