SPX Bearish count close-up. After todays high, the SPX500 has completed all that it needs ,.... to start lower (IF IT WANTS TOO). Bearish or bullish the SPX500 appears to be within a few weeks of a deeper correction. We are trading lightly, holding a few long positions from last Thursday, with very tight stops and keeping correction cash available. NOT in short mode YET, until conformation...Its very rare for three "DIP's", to follow the pattern of the previous,...The next "DIP" may be different, stay vigilant.
Komentar
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SPX: Bullish Count for comparison. We are totally neutral on the Spx500. Trading lightly holding a few long positions from Thursday. Many DOW and RUT stocks look completely oversold. Dollar may have one more leg up then likely lower, good for commodities who have also been beaten up lately. So I wanted to show you a reasonable BULLISH count as well. Trade carefully. until there is a clear structure we are not out of the woods yet.
I am curious what you mean when you say it is very rare for three dips to follow the pattern of the previous. By pattern are you talking about the time between consecutive dips, the magnitude of the dips, or something else?
wolffarchitecture
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Elliott corrective structures tend to follow a alternative pattern bias from sharp to sideways, then sharp again and so on within an impulsive structure of the same degree. Within a typical Elliott impulsive structure wave-2 is sharp and wave-4 is sideways or sometimes visa versa.
What I think we see in the SPX (depending on the count) is at leased 3-4 sharp "v" corrections in a row. This indicates the presence of a DIAGONAL (Ending diagonal (Bearish) suggesting the next correction will be of a higher degree and of a larger scale) or (Leading diagonal (bullish) suggesting the next correction of the same degree (3-4) will be flat or sideways in nature.
The final alternative would be a SUPER BULLISH scenario where what we see is two wave-2' in a row or (nesting) this would drive the SPX to extreme levels higher. I did not include this as I tend to be more conservative.