I consider myself more of an Elliot "Hack" than anything, but then understanding just the basics has a certain beauty to it. Seriously...trying to explain every little sub-minuette move as a total market reaction is about as silly as trying to ascribe each market move to a specific piece of news.
The "Throwover" is not absolutely essential to the ending diagonal. There is Throwover Here, but it is also occuring on the low volume days before Christmas and the half day of Xmas eve.
A spike in volume is not absolutely essential to the ending diagonal, but it nice to have to give more confirmation to the pattern.
Certainly some news does move the market. The News is announced, the market immediately moves, that minute. I spent 2 days on the floor of the CBOE in 1988 and it amazed me how the traders hawked every little news blip and tried to place meaning on it. It seemed silly. It still does. Funny, in 1988 one could just walk into the CBOE with a friend who worked there, now I wonder what security precautions they have or will have after 3 down has it's run.
Please review the chart and watch this Elliot Tutuorial on Ending Diagonals. Let me know what you think.
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Insightful and Useful Comment!