In my last SPX post an Elliott wave Running Flat was illustrated as the completion to a counter trend rally.
The bulls had a little life left in them to move up and invalidate that wave count, the larger developing bearish wave count has not been invalidated.
Many Elliotticians will use single Zigzags as the sub waves for corrective patterns. Sometimes a market will make the wave count more complex, what has happened to the SPX last week is a perfect example of a complex wave pattern.
The correction of what is labeled as wave (I) at SPX 2157.00 took the form of an Expanding Flat. What's fascinating is that each sub waves of the Expanding Flat are three different corrective patterns.
Wave "A" was itself a smaller Expanding Flat. Wave "B" was a Horizontal Triangle" Wave "C" was a Single Zigzag.
It appears that Wave (II) is complete at SPX 2165.90. The initial move down from there so far looks like an impulse down followed by what could be another Expanding Flat, if so this pattern could be complete early on 10/10/16 in the SPX 2158 - 2160 area.
The SPX and the entire global stock market is on the verge of what could be a 15 to 20% decline by early November. Future posts will have more information on this possible stock market scenario.
Mark
The bulls had a little life left in them to move up and invalidate that wave count, the larger developing bearish wave count has not been invalidated.
Many Elliotticians will use single Zigzags as the sub waves for corrective patterns. Sometimes a market will make the wave count more complex, what has happened to the SPX last week is a perfect example of a complex wave pattern.
The correction of what is labeled as wave (I) at SPX 2157.00 took the form of an Expanding Flat. What's fascinating is that each sub waves of the Expanding Flat are three different corrective patterns.
Wave "A" was itself a smaller Expanding Flat. Wave "B" was a Horizontal Triangle" Wave "C" was a Single Zigzag.
It appears that Wave (II) is complete at SPX 2165.90. The initial move down from there so far looks like an impulse down followed by what could be another Expanding Flat, if so this pattern could be complete early on 10/10/16 in the SPX 2158 - 2160 area.
The SPX and the entire global stock market is on the verge of what could be a 15 to 20% decline by early November. Future posts will have more information on this possible stock market scenario.
Mark