SPX Overall ABC Corrective Pattern = Zig-Zag
Wave A: Leading Expanding Diagonal *Important*
Wave B: Zig-Zag
Wave C: 5 Waves down
In my opinion, if you don't have the initial downtrend from January '22 - October '22 labeled as a leading expanding diagonal, you are going to miss a lot of context for the rest of the correction. (See Screenshots below for explanation from pg 40 of Elliot Wave Principle)
Leading Expanding Diagonals are either five sets of 3-wave sequences, or a less typical formation of 5-3-5-3-5 overlapping waves that extend outward in an expanding diagonal formation.
I believe Jan '22 to Oct '22 was the less typical 5-3-5-3-5 variety.
Leading Expanding Diagonals are typically followed by deep retracements.
To support this, Wave B was a bear market rally that extended to the deepest retracement level that maintains zig-zag structure (0.854)
Now I believe, we are finally entering Wave C to complete the Zig-Zag.
Wave C typically extends 61.8%, 100%, or 123.6% of Wave A
(Can go further but typically not past 161.8%)
Sticking with a 100% A:C extension as a baseline; I'm expecting Wave C to get down around 3200.
This conveniently lines up a few points above the .618 retracement level measured from the Covid Low to Jan '22 ATH.
SHORT IT.
Screenshots Below.
Fat_Fat
Nota
Leading Expanding Diagonal - Pg 40 - Elliot Wave Principle Nota
Nota
85.4% Retracement - Wave BNota
Wave A = Leading Expanding Diagonal (5-3-5-3-5)Nota
If Wave B top is maintained, Forks, Fibs, & Waves point to an August/September 2024 finale at 3200 SPX
Penafian
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Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.