Elliott Wave 5.0 "Reboot"

Tuesday, February 2, 2016

E-Mini SP500 Intraday Crash, Price Action Review

My two trend lines are parallel to each other and the original line is based between the bottoms. The crossing of the top line would have to travel far more before I will find another two places to connect a potential trend.In the start of 2016 I will make every effort to always draw parallel lines which I think offers far more stable  reference points. Also, any 3 wave pattern that develops will rip the two trend lines apart early.  

The wave count above is based on a potential 5th wave diagonal move and my first "ABC1" wave is completed. If this is all true then then we should not get any more new bear market lows in the short term.  

A deep plunge would be normal, but it would also have to find a bottom to bounce from. The first Friday of a new month, the markets can go wild, with crazy swings in both directions, so this would be a great turning day for a potential ABC2 wave bottom.