i think we're very close to completing this little correction here - i think it's a sub-wave 4 of the final fifth wave of the third wave of a higher degree.
i'm looking for $5484 on this rally in the months ahead.
it could only happen if dxy rejects that 10 year trendline which it's currently poking at. (view idea below)
little more downside into monday most likely, but it's looking very bullish from my perspective.
Agree with the current leg we're experiencing now. But i dont like the green (1) (2) there because its longer than the blue (1) (2). For me i would just erase the blue one and that would be the whole green leg, which would make the target a lil bit lower. But yea : )
Thanks Elo .. when the 5th of 5 of 3 completes (perhaps in a few months) we expect to see the higher degree 4th wave correction. It could in theory go all the way back to the end of wave (i) at 3600 without breaking an EWT rule. Have I got that right? What is the more likely retracement of a (iv) in these circumstances? Thank you again.
Eloquent
⋅
@aususa2013, hey, as per the law of alternation states - "If wave 2 is a simple zig-zag, then wave 4 must be a complex correction" so applying this rule, i don't expect that larger wave 4 to be a sharp move, instead it'll most likely be a flat correction that takes time to play out
aususa2013
⋅
@Eloquent.. yes of course.. I was forgetting about alternation. Thanks. In this case am I right in thinking a 50% retracement or perhaps one to the Golden Pocket would be more likely?
Eloquent
⋅
@aususa2013, well, a wave 4 only retraces anywhere between 23.60~38.20% of a wave 3 (unless it is a flat) - rarely does it get down to the 0.50%, if it does it is a major sign of weakness.