Elliott Wave 5.0 "Reboot"

Thursday, March 10, 2016

Mini SP500 Intraday Crash Review: No Room To Spare!



The great little crash we had as it makes wave counting very interesting trying to catch these before they happed. In order for to fit into an impulse there is no more room for this 4th wave to wiggely much lower. When it does, it will destroy the impulse, I have been working.  This is not really a big deal just yet, as we could be on a bigger diagonal bullish move that may still shock us. 

I have notched all my degree levels up by one so there could be a high probability of a 4th wave bottom in intermediate degree and we are looking at a potential 5 waves up in Minor degree.   I am sure the markets will give us more of a warning before a major top is in. Warnings that consist of many more diagonal wave structures and even a potential ending type pattern, would dominate before a big trend change. 

Market moves don't work on fundamentals as they work on emotions. Logic has nothing to do with it when traders are very emotional in getting in or trying to escape from a move.  Catching a falling knife is not something the majority does as that is left for the experienced traders.

All our fears in trading can be traced back to the amount you are playing with. When you are gambling do you use $50 of your $100 cash or do you bet $1 at a time? 

So far stocks are heading back up and they look impulsive, which is a good thing.