Two economic reports hit the newswires Thursday morning (March 6). Both were important, yet each one had the opposite implication for the trend.
The market chose one report over the other, and the question is, why — and what can we learn from that?
Both reports came out at the same time, 8:30 Eastern on Thursday morning. One was from Europe, where the European Central Bank said that they, “…decided to keep the key ECB interest rates unchanged.” That suggested that the European economy was getting stronger.
That’s where Elliott wave analysis comes in. Wave patterns in price charts reflect the struggle between the bulls and the bears. So by tracking wave patterns, you can anticipate which side will ultimately win.