This is only the 5% drop that I was talking about. I was hoping it started a week or two later but oh well.
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daily view of the big drop
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We are just about to touch the bottom of the channel which is the blue line. We are also about hitting the 100 DMA. This was a huge drop. I don't think anyone expected this to happen so deep right now. I was thinking that we would get a running flat pattern which would extend the B wave to a higher high only to set up a huge C wave. That could still happen but its just a guess. I need to see the B wave portion of this to get a better idea. Perhaps we stay in the channel for this 4th wave of the inside degree. I know that is a weird way to describe it but it is my way. In other words, if you looks back and see the double 1, 2....I feel that we are in the 4th wave of the second lesser degree wave count which means we should push higher to set up a bigger 4th for the primary 1,2. I hope that wasn't too confusing. So lets see if we get a bounce tomorrow at the bottom of the channel and then to a zig zag. OR...since both of the 1,2's were shallow and long....then it makes sense for this 4th to be sharp a fast. The next 4th should be wicked....yep more wicked then this. I have understood that with such an extended 3rd like we have had.....that the 5th should be kind of short....maybe the same Fib measurement and duration as the 1st wave. Damn the timing of this crap.
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sp500 futures has dropped to the 2000 DMA / 61.8% Fib. I hope that counts because if this keeps up for the morning..wow. the post shows the fib retracement for this smaller degree wave count.....Ill post another with a potential top for the larger...it will be a guess because who knows where the top will be after this.
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Probably going to be another similar sharp correction.
@mohsin_99, maybe a little bit more and then up into March fomc
ALIKZ
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@SalN, Do you think we will be able to see 2700 this week ?
SalN
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@mohsin_99, I’m thinking that’s a stretch. I’m looking at a turnaround at the 50 dma
Will_Wong
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Why is the recent 5% drop charted as a 5-wave drop? Since the trend is still bullish, shouldn't that be an abc correction?
SalN
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@Will Wong, I have two ideas for it. Didn’t post both. This is one in case the 5th is complete. Otherwise I have the one that shows this as just a simple 4th with the 5th just about ready to start. I still think, either way, that March 15th is looking like a point of interest for the start of the big one.
Will_Wong
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@SalN, How is it possible for an ABC correction to a post Wave 5 correction take it above wave 5? I think your count is good if you relabel your wave 5 as wave 3 and the current correction as wave 4 and the abc top as wave 5. Otherwise, it is a good count.