The alternate count that I was forced to adopt upon the break above 1,100. The ideal target area for the correction from 1,011.50 is in 1,140 - 1,145 area.Short term we should see minor wave 3 of C top out near the 1,116-1,117 area leaving room for a flat or triangle correction in wave 4 before the last rally higher in wave 5 of C.
Hey,
ReplyDeleteI am new to the Elliot wave, I would like to know what happens once the S&P touches 1140-1150 as expected by the elliot wave graph. Does the new rally start from there or is it expected to fall to some level?
Thanks,
Hi Raj
ReplyDeleteWelcome to my blog. Nice speaking with you.
R.N. Elliott formulated his view on the stock market in 1930's, what he found was that the stock market (Dow Jones Industrial) moves in patterns. An impulsive wave is made up of five waves three with the trend up or down and two corrections against the trend. When the fifth wave is finished the main trend will be corrected by three waves - two against the main trend and one correction in between.
What you are looking at on my chart is the very short term picture and we looking at the minor waves. That is important to remember as the are several different degress of trends in work at the same time. The Grand Super Cycle degree is up. The cycle degree is down. The Primary most likely peaked in April and turned down and the intermediate is that we have seen the first wave down and are correcting wave 1 down with wave 2 up, so when wave 2 hits the 1,140 - 1,145 target area I expects wave 2 to be done and wave 3 down takes over. Wave 3 is normally the most dynamic and the biggest wave, so we should see the S&P 500 drop well below 1,011.50 in wave 3.
I would recommened you to do some reseach on the subject. The Elliott Wave Priciple at first can seem frustrating, but as you get the hang of it, the simply isn't a bette technical tool out the to describe the market action.
The Elliott Wave Principle isn't the holy grail and as the wave unfold there can be many different interpertation at one time, but this is the only technical tool I know that can give you some very specific projection and a possible parth of the future market action in details.
Just to repeat: When we see the 1,140 - 1,145 area hit then we should see a new decline begin.
Hi,
ReplyDeleteThanks for the detailed explanation. Appreciate your time and effort on this.
I have been reading this for sometime now and it is very interesting though as you mentioned there are times when its a little difficult to follow or understand.
Do you have any link on your blog or website where one can learn more in detail about elliot wave?
By the way, just to add that you are doing fantastic and its great that you post these blogs about currencies and markets and give your views on it.
Thanks for everything.
Regards,