XLF Wave Count - Wave A, B or C?

Discussion in 'Trading' started by pmob67, Feb 19, 2009.

  1. pmob67


    I have a few questions.

    XLF is currently trading at 7.63 and making even new lows daily..

    In looking at the XLF chart, it's very difficult to comprehend if Financial is in a Wave B UP formation as many Technical Analysis guys point that the other major indices are currently in( DOW, NAS, S&P).

    XLF breached it Nov 20 lows several weeks ago and has continued falling. It's 20-30% lower than the Nov. 20 lows.

    It is impossible according to the Elliott Wave Theory, for XLF to be in a Wave B Up formation of ABC correction, since this current down wave has surpassed the previous lows by such an significant amount.

    So, My questions are..

    Is XLF currently in Wave A down or Wave C down of the ABC Correction?

    If the DOW breaches the Nov 20 lows and creates a new low, Does this means that this is still Wave A Down and Wave B Up hasn't started or is this currently Wave C down ( final wave of the ABC correction)?

    Happy Trading!