Elliott Waver bearish on stocks

https://www.cnbc.com/2018/04/20/one...-hinting-at-a-short-term-drop-for-stocks.html

Todd Gordon of TradingAnalysis.com says one classic market trend could be pointing to a short-term drop for stocks.

Gordon points to the Elliott Wave Theory, which posits that stocks and indexes generally travel in a successive series of five up and down moves. On a chart of the S&P-tracking ETF (SPY), Gordon points out that the market is currently on a third, uptrend wave, and a fourth wave would imply that the SPY is about to move down.

"I think we have one more drop down to go here, which gives us opportunity to be short before the market gathers itself and we continue on higher to new highs," he said Thursday on CNBC's "Trading Nation."

 

I got a similar email, pointing to lower lows. 2575 I think using EW. I might post it...

 

".... short-term drop ..."

is not really being bearish on stocks.

And I'd say 50/50 his wave count is correct.

 

Isn't the 3rd leg the most profitable, not the fifth and final?

Or is this the middle leg?

 

Most times 3rd is largest point move and greatest rate of change ascent/descent. Most times.