Elliott Wave 5.0 "Reboot"

Saturday, February 27, 2016

E-Mini SP500 Intraday Correction Review



Constantly looking back and reviewing any wave count is my normal method of  trying to always get the best fit. Most of the time it is impossible to get it right without checking for misinterpretations, or too much irrational exuberance, in completing any wave sequence. 

Even though this market seems to be looking like an impulse decline at this time, an "A"  wave 2 decline could be in progress.  We are getting spikes to the upside, but I think there is more upside to go with this stock market. 

If this wave count fits a bit better then we may be getting close to half time in the entire move.  The next set of 1-2 waves after this set may do it, as there would be no more 1-2 waves, but only 3-4-5 waves need to be completed. 

The exact same thought process I use in figuring out my Cycle degree wave count,  as it also must have wave 3 as its longest wave. 

All other major wave counters use a 4th wave base not a wave two base, as I do.  I look at Elliott Wave as just one big mother impulse where wave three must be extended, and a wave zero was somewhere in the past.  In commodities and strong stock manias, the 5th wave may extend, and then usually only in the last degree.  

There still may be part "B" and "C" to play out so we have to be aware of that. 
Very few traders can ride down an "ABC" wave without getting out in a panic, as only the very wealthy experienced traders, have enough room in their accounts to take draw downs the likes we've had in the last few weeks.
                                 
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The markets are not in a GSC degree or are they in a SC degree corrective pattern as the big degree crowd is working a wave count that never happens in the real world. You will never see three back to back expanded flats for any wave three corrections, and with successive higher degrees to boot. 

The three expanded flats they are using, are Primary degree, and a future Cycle degree "ABC" not finished, and SC degree "A" wave bottom yet to come.  What do you think is going to happen to the markets once and if SC degree "A" wave hits a bottom?  I would be screaming bullish profanities, saying, That the SP500 is going to 2400 or more.  There is no chance on this blue planet that a SC degree "B" wave rally is "not" going to break any extreme wave top we ever had! 

I am sure you will never see the big degree wave counters turn this bullish, especially if the SP500 has not hit the 1970's price level by then.