Elliott Wave 5.0 "Reboot"

Friday, March 4, 2016

E-Mini SP500 Daily Cash Chart Review: Bull Trap Or Correction?

This is the E-Mini Cash contract and from this daily chart perspective, it looks like a huge spike to the upside has completed! Yikes! This is not good, as complete trend turnings can happen from such a vertical advance.  Besides, we have many overlapping wave structures so this can be a diagonal wave just as easily, with a finishing "C" wave bull market. 

This cannot keep going like this or it must head into a correction. Any correction should go sideways and not even go that deep, otherwise the wave structure will break the impulse pattern. In an impulse there is very little room to wiggle away from the script, so we shall see what happens next week. 

In the last 7-8 months we have seen some wild moves up and down, that scares the shit out of many investors and analysts. What else is new, as this is the name of the game. In the long run the majority will never gain on any trend, because if they could, then there would be no 99% majority in the world today.