As a follow up to my post this morning, this chart shows the waves I tried to describe earlier.
Chart courtesy of Stockcharts.com
There were five waves down from Oct07 to March. We finished the “a” wave bounce in May. Hopefully, we are about finished with the “b” wave. Following a “c” wave to the 1450-1500 level, we should see five more waves down into October. Price is moving as I pictured it in March, but the “b” wave is lasting longer than I thought it should.
Post Modified: July 2nd, 2008 at 11:53 pm
Tags: A-B-C Correction · Elliott Wave Analysis · Standard and Poor's 500 (S&P500)6 Comments
6 responses so far ↓
What if wave b goes all the way below 1273. What would that mean ?
TK - As long as “b” stays above the 1256 low it is ok. A “b” that goes below is probably very bearish longer term.
If the s&p rises 10 % from here I will tip my hat to you.
Robert
andy if you are right ,there is support in the qqq’s at 46.75 and the spx at 1302
Andy - why 1256 ?
1273 is where you start you A wave. If we go below that then A won’t be A anymore ..
TK - The “b” wave can exceed the start of “a”. This can mean two things (which isn’t really helpful). 1. It could mean the market to too weak to support the correction. 2. It could mean the bears are overextending themselves and a trend change will come. Some view the SPX July high as the end of wave 5 and the October new high as wave “B”. Actually, page 47 of Prechter’s book shows and example that looks a lot like the current market.