Or we could go sideways in an A-B-C-D-E zig-zag pattern.....as the Fed continues to talk and intervene on any market weakness as well as corps remaining profitable despite consumers becoming quite weak. Quite a conundrum here. Best strat may be to fade which ever way the market breaks. That was the perfect strat in the Yen Carrytrade event. That down move lasted nanoseconds....relatively speaking. I agree that a move to new highs would be a great short opp.
Agreed, and this will catch many by surprise who have bought into the historical pattern of year 3 being the strongest term of a Presidency. Interesting juncture here that only a few on ET are aware of.
Landis, Nice call on that last impulse up to complete the B wave. Now if it would only head back down to complete the C, I think you would make elliot proud...
Thank you Dtrader. An SPX close below 1440.15 level confirms the start of the C-leg down. This is not a time to be buying dips.
FYI: This sequence can still be looked upon as a "B-wave" given that "B-waves" frequently make new highs and the overlapping nature of the advance that continues to unfold. Given that the first move off the recent low in late February was 74.71 SPX points . . . one can look for a "measured-move" where the next leg would target 74.71 points from the low rendered at 1408.90 in the first week of April. Thus, the target for this B-wave advance would be: 1483.61 Look for a high to be rendered in the next 3 sessions.
Hit the target today. However, the hourly chart is showing some rather impulsive characteristics, as opposed to the overlapping nature of the typical B-wave.
Seriously, though, I think he means that what he thought was a corrective wave may not, in fact, be a corrective wave -- in other words, we're going higher!
that mean some more head scratching. ps. but seriously EW people do that a lot so it's 'normal' actually.