SPX Bear Trend in Running Flat; Soon to End?
Index might be in an expanded irregular flat EW, with descending wedge an indicator of diminishing supply as the bears grind down to the 0.62 Fibo retrace line.
In Elliott Wave theory, in a strong bull market the ABC correction 'C' wave can terminate above the bottom of A, and may appear as an expanded flat correction, rather than a deeper C that carries below the A termination, or a so-called 'running flat.'
It's really dangerous to short these, it's like trying to pick up dimes in front of a bulldozer.
Expect a strong bounce at the apex of the wedge- within a day or two, if no break down. Dow closed at 253 support and Sand P just above the 274 Fibo line.
After two weeks of bear control it seems the bulls are setup for a powerful rally. Don't get caught short... of course possibility exists for further break down.
IF we do get a break down from this formation, it would be extremely bearish and could herald a bear market. IF we get the bounce the Bulls will roar back.
Stay tuned!
As always, this is not investment advice, trade at your own risk!
Forex link to Expanded Flat Correction Theory:
www.dailyfx.com/fore...s-to-Know-JWedu.html
Added ABC EW to this chart (Double-click to view- a bit buggy):
In Elliott Wave theory, in a strong bull market the ABC correction 'C' wave can terminate above the bottom of A, and may appear as an expanded flat correction, rather than a deeper C that carries below the A termination, or a so-called 'running flat.'
It's really dangerous to short these, it's like trying to pick up dimes in front of a bulldozer.
Expect a strong bounce at the apex of the wedge- within a day or two, if no break down. Dow closed at 253 support and Sand P just above the 274 Fibo line.
After two weeks of bear control it seems the bulls are setup for a powerful rally. Don't get caught short... of course possibility exists for further break down.
IF we do get a break down from this formation, it would be extremely bearish and could herald a bear market. IF we get the bounce the Bulls will roar back.
Stay tuned!
As always, this is not investment advice, trade at your own risk!
Forex link to Expanded Flat Correction Theory:
www.dailyfx.com/fore...s-to-Know-JWedu.html
Added ABC EW to this chart (Double-click to view- a bit buggy):
Order cancelled:
Yeah that was a surprise, eh?! We got a test of support with a gap-filling retrace I'm guessing but I think the trend is down now. For how long- idk, sry!
Comment:
It's remarkable how the retrace approached former support and turned back EXACTLY at that price level, which was also the 0.618 Fibo. I'm afraid it may be done for now...
