I’ve only been working with EW theory for slightly more than a year but it would certainly would appear wave three concluded in the area of 2083 and then worked its way up to the possible top of wave five in five waves.
Others have made the same observation but are unwilling to declare a possible end to wave five whereas I am open to the possibility because of the fact that it’s almost a perfect Fib extension and that a 5% move in four days is a rare event; in the past year we have only seen a handful of such moves usually coming off bottoms.
After such a move, in most instances there is a one or two day rest. But what we have just witnessed is unique in the sense we were not coming off a deep bottom, making analysis based upon comparisons exceptionally difficult.
But when combined with EW, VIX in the basement and recent history of market performance following the 4th of July, I’m willing to stick my head out and say we may see limited weakness in the markets on Tuesday and Wednesday before the push higher resumes.
jeffhirsch.tumblr.com/
Others have made the same observation but are unwilling to declare a possible end to wave five whereas I am open to the possibility because of the fact that it’s almost a perfect Fib extension and that a 5% move in four days is a rare event; in the past year we have only seen a handful of such moves usually coming off bottoms.
After such a move, in most instances there is a one or two day rest. But what we have just witnessed is unique in the sense we were not coming off a deep bottom, making analysis based upon comparisons exceptionally difficult.
But when combined with EW, VIX in the basement and recent history of market performance following the 4th of July, I’m willing to stick my head out and say we may see limited weakness in the markets on Tuesday and Wednesday before the push higher resumes.
jeffhirsch.tumblr.com/