FX:SPX500   S&P 500 index of US listed shares
11021 57 245
Hi Guys, the S&P             just completed the C wave with an ending diagonal so look for an up impulse. Any flag on a 60 would be a nice buy setup.
This is a forecasting chart, not an AFTER THE FACT this was my winning trade. So please use a tested strategy to trade it , if you don't have one STOP TRADING live and go back to learning.

Trade with care
Thank you for your support.
Comment: Monthly view
Comment: Just a bigger correction still more up until trend is broken
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do you think the rally will continue at this pace? If so, will it the wave end around 2400
I was just looking at the 3rd week of December which will be Friday December is 16th for this year due to us starting the 1st of December on Thursday. Every year over the last year we had huge moves or as I would call reversal days. These reversals for that particular week are 600 points on up. After the dip we had a huge reversal (pullback) to the same levels roughly from where they dropped off of.

Look at link below and go back to 3rd week of December for the years of 2015 and 2014. The 3rd week is when the last quarter of futures expire. This year it happens to be Friday the 16th. We should have a contest to see who can play and time this right for a possibility of big money to be made during that week if this year plays out like the last 2 years did.


Possible further projection of the fifth intermediate wave (purple).
+1 Reply
@BhaktaBasics, never give up. Remember to grasp the essence of the theories and form your own. By that you develop the confidence you need to have a change becoming successful in trading, which is really only economic psychology. Google this "Elliott-Wave-Basics.pdf" and download it. It covers the basics, and is all you really need. Research more on the topics discussed in this 50 page guide if you do not understand them. Use investopedia.com to quickly get a quick and better understanding of different topics discussed in the guide. I would look up on Investopedia; DOW theory, Fibonacci levels in trading, and geomtrics.

Regarding what is happening in this market now, I have to agree with Anil, we are in a strong uptrend, which only so far have seen smaller healthy corrections over the years. I had expected a much more harsh drop if Trump got elected, so the dip we saw tonight is a good sign for further upside ahead. -Often, change is just healthy. Remember how a wave in Elliott wave theory evolves; an impulse needs a correction to continue to its progress.
BhaktaBasics The_Observer
@The_Observer, I appreciate you taking the time to respond. Regardless of how it may look, I can assure you I am not a beginner in trading. The purpose of my posts in this discussion are to establish whether EW theory is useful for me to use as 'part' of my tool kit.
In my post I used the most basic governing rules of EW theory to make sense of Anil's/your chart and wave count. These rules were taken from the pdf you kindly posted (Which I actually had already). This 5th wave is clearly a 'diagonal triangle' rather than impulse, since wave 4 overlapped wave 1, but regardless, it's still a motive wave and therefore the rule still holds that wave 3 cannot be the shortest wave.
If the above is true then, in your opinion, is there anything wrong with the conclusion in my previous post?

BhaktaBasics BhaktaBasics
@BhaktaBasics, Sorry i've just seen from your other post that you have a different wave count to Anil. Where Anil has 3 waves, you have counted as 1.
The_Observer BhaktaBasics
@BhaktaBasics, please post a chart of your view and I'll have a look at it:)
BhaktaBasics The_Observer
@The_Observer, Sorry there's been some confusion here. Let me try and explain ...
1) Anil posted this idea about SPX with an update showing wave count for this 5th wave (please see in update section).
2) I used his chart to predict a potential magnitude for the 5th wave (using the rules of EW theory as i understand it). This gave a prediction for the 5th wave to land at no more than 2233 (since wave 3 cannot be the smallest in magnitude). Please see my previous post on this to see how i arrived at such a conclusion.
3) It is this conclusion i was looking for an opinion on.
4) However, I have since realised that your chart (posted below) shows a completely different wave count to Anil's
5) Therefore, since you're in disagreement with Anil you will also be in disagreement with my conclusions which are based on Anil's chart/wave count.
Thanks for the update Anil. If we are to assume the EW path (& theory) and use the wave counts you have included in your update i notice that wave i (of V) registered around 300 pips whilst wave iii (of V) registered around 200 pips. One of the basics rules of EW theory is, and i quote, "Elliott further discovered that in price terms, wave 3 is often the longest and never the shortest among the three actionary waves (1, 3 and 5) of a motive wave. As long as wave 3 undergoes a greater percentage movement than either wave 1 or 5, this rule is satisfied."
Since wave 3 so far has been the shortest at ~200 pips it should follow that wave iv (of V) will be no more than ~200 pips. Further, if we assume that we have just had the C (in the ABC 4th wave correction as in your chart) which measured ~2033 then the 5th and final wave CANNOT go further than 2233. It has to go beyond 2193 (wave iii high) since the 5th wave is a motive wave and has to make progress. In summary, the 5th wave has to land between 2193 and 2233. i.e. a nominal new high before we have our major correction. This is just my interpretation of using EW to try and make a useful prediction for trading purposes.
Would appreciate your (and any other Elliotician's) thoughts ...
So we buy this major selloff that is about to happen?
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