The Audacity of Slope

Allan’s continued market analysis: further downside from here based on the S&P breaking through the bottom of the triangle pattern, and his software’s Elliott Wave count.

This is what I wrote last Friday in the Comments after that quirky Friday close:

It was a work of art. Chop, chop, chop, gone. Three chops just before the close before a three day weekend and with everyone and their brother stopped out and gone for the day, they initiate Wave 3 Down with no one left short, except them of course.

If Tuesday’s gap leaves any room to get on board, there should be plenty of downside remaining…

Before getting into whether or not there was room to get short, let’s be clear about one thing, that the wedge has been decisively broken to the downside:

Weekly SPX

For a little perspective, let’s zoom in the the price action for the past two weeks, via the 15 minute SPX:

15 Minute SPX

Now we zoom further and look just at today’s action (far right on above chart):

15 minute SPX Wave 5 Projections

My Advanced GET software is projecting a decline to under 720, just based on today’s (Tuesday’s) mostly sideways action. Once this decline starts in earnest, expect even lower projections.

SPX Daily Chart with Wave 5 Projections