Elliott Wave 5.0 "Reboot"

Thursday, January 28, 2016

E-Mini SP500 Daily Chart Review



For the next little while or longer I am going to explore the idea that we are on a 5 wave diagonal decline in Minor degree and that this set of 5 waves will end on an "A" wave in Intermediate degree.  For now I will count it out as a regular impulse and adjust along the way.  

At anytime this could backfire and no longer work, to where the wave count will completely be trashed, but I must run for awhile to see how long it will work for.   I'm going to target about 1400 for a potential "A" wave bottom, which is about a net 50% correction calculated from the 2009 bottom. 

I am using the secondary peak in July 2015 as my main top of an ending diagonal. Since all of it should be labeled "ABC1....." our present 4t wave top could be a "B" wave top where we would get another "C" waves crash, travelling much deeper than what I saw.  In other words, we have what seems to be like many mini 1987 crashes starting back in October 2014. 

Another "C" wave leg down could erase another 270 points, before another wave three bottom is reached. We still would have about 200 points to go, to get to a wave "A". 

This is all sheer speculation on the idea that an "E" wave decline can happen, but the same thinking is applicable to any degree size.  

Any potential "B" wave rally in a zigzag can be virtually any type of correction you can dream up, and it will be next to impossible to figure out beforehand how high the counter rally will go. All I can tell you is that any "B" wave counter rally in a zigzag cannot travel to new record highs. 
We could get an expanded flat, a regular flat or even another triangle in the "B" wave.  

Triangles serve as a warning, that one more thrust to the opposite of the triangle is coming, and also another major degree change must happen, once that "thrust" is completed.  At a minimum the degree change must be at least one degree higher and many times it will be two degrees higher.