Elliott Waves are used to explain the structure of market movements, but are highly subjective and require interpretation. Yesterday I came across three blog articles discussing the current state of the market and using EW analyses to project into the future. By each analysis, the market has not seen it’s lows yet, but the magnitude and timing of the predicted future decline varies between interpretations. If you’ve visited the Favorites lastnight, you may realize that this post was the first in the series, and I’m moving it to the top in my effort to explore "phantom html coding." So, let’s see what happens here.
Wave 5
Courtesy of Allan
As the chart below illustrates, time is running out on the Wave 4 corrective rally. At it’s completion, Wave 5 will commence with a target at or below the indicated support level 700 on the SPX.
What I am looking for is some indication that Wave 5 has started. The first clue will be prices dropping down to break the Wave 4 regression channels. Another trigger will be a drop below the Wave B low late last week and a third trigger will be a False Bar Stochastic cross-over below the 75 level. Any or all of these technical patterns will suggest Wave 5 lower has begun with an initial target of SPX 700.
A
