Tracking counts from the ATH, with the purple series of 1s2s being the most bearish and the blue ABC being the most bullish (Chart 2).
Chart 3 shows details on SPX, and Chart 4 shows details on ES including overnight actions.
In light of the above, the simple blue zigzag down looks interesting.
As MTU notes the about the blue zig-zag, the key question is whether this is a 3 wave decline, or a distorted 5 wave seq.
ReplyDeleteBecause of the steep angle the US mkt indexes been running at for many years the rally in Jan-Feb may be a wave 2 of the neg 5, as the same time zone of it is a 2 on UKX.
I prefer the odds its a 5.
The other aspect to MTU's comment about the zig-zag is also whether if we that the simple visual of 3 waves there on SPX DJIA etc and ask the question is this 3 there part of a 5, with 4 and 5 to come ? Or is it an a-b-c ?
ReplyDeleteAnd then there's still the question has the 3rd wave completed given its often an extended wave ?