Elliott Wave 5.0 "Reboot"

Monday, January 4, 2016

E-Mini SP500 Intraday Crash Review: Last One Out Please Turn Off The Lights!




The pattern is more important than price, and I see the markets are reacting to China, or are they reacting to a potential full war in the Mideast?  Either way the drop has been very steep, and even leaving a gap in its wake.  My C to D wave, also looks like a perfect zigzag at this time. Technically, I would like to see that potential zigzag completely retraced. Of course, if my 4th wave is real then this market can roar back with such a vengeance, that it will shock us. It will take many more claw slashes from the bears, before this bull is mortally wounded.  

The VIX has also made a gap on its explosive move up and gold reacted as traders exhibit fear investing.  Fear investing never lasts long as even the US dollar has recovered and pushed higher.  

I will remind readers that I will always try and draw my trend lines by using 2 or 3 equal parallel lines and will never try and force the trend, by moving the goal posts.  I see it as providing more stability and it will be clear cut when the markets escape out of these double or triple lines. In other words I will not knowingly produce throw-over or throw-under the charts. 

At any other time my c and d wave would work as a great 1-2 wave, but everything coming before it does not.  Even if the markets keep crashing way past my bottom trend line, it can still catch a 4th wave at another location.  Only some clear cut impulse waves will extend the decline and then we have to be very aware where we are counting from.