My previous posts have noted that an Elliott wave Ending Diagonal Triangle (EDT) may have been forming since the 2/11/16 bottom. This EDT counts as complete as of the 9/22/16 peak at 2180.
Truncated 5th waves are when wave "5" fails to exceed the termination point of wave "3"
EDT's in a rising market are the most bearish Elliott wave pattern. They are termination waves and quickly retrace to their point of origin, which in this case is SPX 1810.
Truncated 5th waves in a rising market signal weakness and a sharp decline coming.
The combination of a Truncated 5th wave on an EDT is a SUPER BEARISH SIGNAL!
The SPX could decline to the mid-1700 area by late October or early November.
Mark
Truncated 5th waves are when wave "5" fails to exceed the termination point of wave "3"
EDT's in a rising market are the most bearish Elliott wave pattern. They are termination waves and quickly retrace to their point of origin, which in this case is SPX 1810.
Truncated 5th waves in a rising market signal weakness and a sharp decline coming.
The combination of a Truncated 5th wave on an EDT is a SUPER BEARISH SIGNAL!
The SPX could decline to the mid-1700 area by late October or early November.
Mark