Elliott Wave 5.0 "Reboot"

Saturday, December 5, 2015

Mini DJIA 2000-2015 Elliott Wave Count Review: December Triangle Special!

Long term readers know that I have been adamant in saying that we are not in SC degree and if this is true then there is no way in sequential wave counting that we have entered the world of GSC degree since 2000.  

Since the 2000 peak we have had two more higher peaks which can only happen in expanded flats or in a triangle. Double flats or a flat leading into another flat of a bigger degree should never happen as they will "always" alternate first. 

Now triangles can make some wild moves but the patterns I would need must be closer to zigzags than flats. There will also be 5 waves leading and then trailing with alternating styles between any two 5 wave sequences. These 5 wave sequences cannot or must not be counted any higher than Minor degree runs. This would be the part of the technical requirement of a Cycle degree triangle. 

If this was a SC degree 4th wave or a GSC degree 4th wave, then the requirement for each 5 wave sequence jumps up by one degree each time. For SC degree I need all my 5 waves to be in Intermediate degree and for a 4th wave in a GSC degree correction I need all the 5 wave sequences in Primary degree. About 10 sets overall! Has any of this happened since 2000? No not anywhere in the last 15 years or since 2000 can we find a clean set of 5 waves up or down in Intermediate degree.   

This is what an Idealized SC degree triangle wave count requirement would contain with a downward bias. "D" waves can make dramatic moves where it is very difficult to tell the difference between that and a wave 1 in the same degree. It would be better if the 2009 run had a clear impulse to it but this has been very iffy, at best it would fit a diagonal. 

I will try and keep these two indices as triangles for as long as I can or until the markets completely trash them. Short term I am still bullish but longer term I am sure we are going to see another major bear market. 

They tried to force one down into 2009 but that was a bust as chances are good if it was 5 waves down we would not have broken to a new record high.