Elliot Wave S&P - Another wave to reach all time highs?
Many Elliot Wave Technicians believe that we have already completed the 5th Elliot Wave in the S&P and are in the A-B-C correction, which will either take us down to test the March lows or begin another Elliot Wave up.
Because of that, many people are getting short in the market. When the masses expect one outcome, I feel that is when the market does the opposite. Nobody thought we would rally back this high, yet here we are.
I took a non traditional approach to counting the Elliot waves and I believe the first wave was an elongated wave. When this happens, often the 3rd wave isn't not the longest. Also, the 4th wave will sit directly on top of wave 3.
All of these characteristics, on top of a very bullish trend channel I'm tracking, leads me to believe that we are still in an uptrend and we have one final wave up before the expected A-B-C correction. With an additional wave, it will surely trap all the bears and put in real FOMO. I do not believe FOMO has set in (which is usually found in a wave 5), and I also do not believe we have seen a 5th parabolic wave.
This Elliot Wave pattern I'm proposing, also sets up a head and shoulder pattern that Elliot Wave patterns create (which is not present today if people believe we have hit wave 5).
I think it could go 50/50. We have either completed the 5 wave pattern and are headed for a correction or we have 1 wave left. The next several days leading into the 4th of July holiday should provide some clarity.
If the channel is broken (we close a candle underneath), then this trade idea is invalid.
Please trade at your own risk. I am an Elliot Wave newbie and I do this for fun. Do not trade based on my idea.
Because of that, many people are getting short in the market. When the masses expect one outcome, I feel that is when the market does the opposite. Nobody thought we would rally back this high, yet here we are.
I took a non traditional approach to counting the Elliot waves and I believe the first wave was an elongated wave. When this happens, often the 3rd wave isn't not the longest. Also, the 4th wave will sit directly on top of wave 3.
All of these characteristics, on top of a very bullish trend channel I'm tracking, leads me to believe that we are still in an uptrend and we have one final wave up before the expected A-B-C correction. With an additional wave, it will surely trap all the bears and put in real FOMO. I do not believe FOMO has set in (which is usually found in a wave 5), and I also do not believe we have seen a 5th parabolic wave.
This Elliot Wave pattern I'm proposing, also sets up a head and shoulder pattern that Elliot Wave patterns create (which is not present today if people believe we have hit wave 5).
I think it could go 50/50. We have either completed the 5 wave pattern and are headed for a correction or we have 1 wave left. The next several days leading into the 4th of July holiday should provide some clarity.
If the channel is broken (we close a candle underneath), then this trade idea is invalid.
Please trade at your own risk. I am an Elliot Wave newbie and I do this for fun. Do not trade based on my idea.