If we use the Elliots Wave like in 2022, this is how it may play out. The selling has been steep enough to apply the Elliots Wave here.
Catalysts for Oct is a hotter than expected CPI/PPI, especially with fuel inflation rising and fuel prices rising back near record highs.
Bearish Technicals: (1-Week)
- RSI - MACD - MFI
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On the contrary, these moves while are some steep selling are not enough (yet) to say its a resumption of the crash that started Jan 2022. Perhaps we bounce off the trend line of Oct 2022, March 2023 and move back up for some unmerited reason?
Comment
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Looks like we may break that long term trend line (yellow)
your wave 4 enters the price territory of wave 2 though
WorldEconomics
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@colbyhemming, I know.. it’s not playing by the rules but then again neither did the Jan 2022 sell off if you look at wave 4 but it still held pretty well to the wave.
FiboTrader1
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I see this as bottom of wave 4 and we are heading up for wave til the eoy
WorldEconomics
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@FiboTrader1, Let's see. Fundamentally, nothing is really holding up this market. Not earnings. Not geopolitics. Not the economy. Earnings aren't great either. Banks are in trouble. If we see the Mid-East war spread, exact the market to freefall.