Elliott Wave 5.0 "Reboot"

Saturday, March 5, 2016

E-Mini S&P MidCap 400 Index (EMD) Daily Chart Review: Correction Or A Bull Trap?

This is the cash chart of the S&P MidCap 400stock index.  When I looked at its matching rally we can see the S&P 400 exploded much more than a few of the others. This is a near vertical launch, and when I see these I look for the bearish implications.

Working this entire bearish market as a diagonal decline, makes me think that another 3 wave type crash can occur. Of course the diagonal 5th wave down could be extended, so that would be another wild ride down.  There is little room to move to the upside before it gets trashed, but if it works, then we are looking at a potential crash. 

I think this market would land on another potential wave 1 or a wave "A" in Intermediate degree. 

June 2015 was its last major high with what looks like a perfect impulse wave up to that June peak. 
Could that June peak be a "B" wave in Primary degree, if so we could be looking at 5 diagonal waves down in Intermediate degree.  

Every rally we will ever get has to be watched for choppy patterns  as we could have many fakes for several years. 

There are also gaps well below present price levels so this just adds to the suspicion another big bearish move will happen. 

By the 8th we are going to be in a new moon situation which has been know to be an extremely bearish time period.