S&P 500 vs. Elliot wave theory

FX:SPX500   S&P 500 index of US listed shares
Since the beginning of the bull market (2009) SPX500             had 3 bigger long runs with impulse wave 5 being the largest. Fed printing money, low inflation and improving macro data was on the side of stock investors. Some rest and profit taking can push lower the index towards the 1800's and later even lower.
Wave 3 cannot be the shortest wave.
+4 Reply
Will Wong is right.
Also, Wave 4 CANNOT go into wave 1 area.

Elliot Waves theory was developed in the late 20's of the last century, based on the (right) assumption that human psychology creates a repeating pattern of actions in the market.

Nowadays though, it's a whole new story. approx. 70% of the actions done in the market are made by computers. No psychology involved. Only pure Technical analysis (highs, lows, trends etc.); News ; Fundamental data.

Elliot Waves theory is nice, but very outdated in my opinion. I would strongly advise you to go with some other method, but, it's only me... and I could be entirely wrong.
I think with today's technology it is pretty straight forward to program Elliot Wave analysis into the buying and selling of stocks. EW is very seldom used as a standalone model but in conjunction with others like Fibonacci Retracement etc
Csys Eran_7
"approx. 70% of the actions done in the market are made by computers." Who says that?
thank you robert
Will Wong & Eran_7 nailed it. Impossible for this to be a valid Elliott Wave count.
Please stop this
Will Wong NickCoulby
What do you want us to stop?
Csys, this is for you.

Financial Times publication / Morgan Stanley research.

Oh.. And you know what, back in 2012 when this article was published, it wasn't just 70% of overall activity mad by computers... it was 84%...

Open you eyes... Just saying.
Csys Eran_7
Dubitable source. Doesn't give any reference to the mentioned study and doesn't justify the reliability of basing the study on 13F fillings. Still, an interesting result! Thanks for sharing.
+1 Reply
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