Status. Long position closed at the fifth wave, 5)1.3:3v. Bullish Scenario 1. 5)1.3:3i.iii has ended. After a 100, 10, 20 points correction of 5)1.3:3.i.iv the Market will jump to new monthly high. Strategy 2. Open long position at end of 5)1.3:3i.iv end.
Bearish Scenario 2. 4)c.3:1 and :2 have ended. Next is 4)c.3:3. Bearish count is unlikely now. Strategy 2. Open short position when there is a lower low on Monday.
Yet another potential outcome for the market. Wave 4 corrective patterns especially after the very, very strong wave 3 we have seen unfold over the past 4+ years, and after a simple corrective wave 2, will take on the pattern of a complex corrective pattern. Often an irregular as I have been looking to occur or even a triangle as is now a potential 4th. In either case a 4th wave complex occurs for a simple reason....to convince all those bulls from the extreme wave 3 that a top is at hand. In other words, get them to sell their stock to the smart money especially at low prices. That produces the violent swings we have witnessed in this complex 4th. Those that think the top is in place will be selling near prior highs and when that triangle high is taken out they will covering and produce a slingshot higher in prices, and hope they can get aboard the "Wagon to Heaven". Of course the smart money has already bought and is taking the wagon higher looking to give a helping hand to all that want to jump aboard. Once all are aboard then the smart money will be jumping off the "Wagon to Hell" locking in the dumb money at the true top of this market. Moral to this story....get long on all pullbacks especially in the 1450- 1460 area to join the smart money on the "Wagon to Heaven". The Symmetrical Triangle I have shown in the pic. is potentially a continuation pattern in that about 3 out of 4 of these do continue to higher prices. So, the measurement is included as a possible outcome from a breakout of the triangle to the upside.
It varies, but technically the move from the apex of the triangle is where the measurement should be made....so revised chart with projected top. Please note that the August and November lows are Sentiment Extremes (bullish)[proprietary info]. Not until we see a Bearish Extreme (ie at higher prices) do we want to consider selling.