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S&P 500: Volatility Returns

By Vadim Pokhlebkin
Wed, 23 May 2012 18:15:00 ET
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On May 22, the DJIA had a solid intraday rally, but closed 1 point lower.

On May 23, the index had the opposite experience: a deep intraday decline that got all but erased by a rally into the close.
 
As a result, the "fear index" VIX for the S&P 500 moved from the 24.64 high on Monday to 20.07 low on Tuesday -- and then back to 24.61 on Wednesday.
 
Such zig-zaging volatility is good news for the (few) traders who know how to ride it. You know what helps with that? Elliott wave analysis.
 
Near the close on Tuesday, May 22, our U.S. Intraday Stocks Specialty Service showed subscribers this 30-minute chart of the S&P 500 (some Elliott wave labels erased for this article): 
 
 
As you can see from the chart, the preferred Elliott wave count late on May 22 was calling for another leg down, to finish the 5-wave Elliott wave sequence. That helps explain the May 23 intraday selloff.

Find out right now from U.S. Intraday Stocks Specialty Service if Wednesday's intraday drop finished the wave count, and where S&P 500 should move to next.


S&P 500, NASDAQ and DJIA -- Intensive Intraday Forecasts 9 AM - 4 PM Eastern, as the Market Trades 

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Tags: Elliott wave, Elliott Wave trading, futures trading, S&P 500
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