Finally, some suggestions about where we're going. I believe this is wave 3 of the large 5 wave bear market structure. I am not an experienced Elliottician, but I use what I do know of it as a general guide to get me going in the right direction. I am more experienced with traditional technical analysis. My educational background is in the history of philosophy, so please do take all of this with a grain of salt.
Wave 3, the big wave 3, could very well take us all the way to the 2007 highs, somewhere around S&P 1500-1700 or something like that. That will take months to play out. Wave 1 of that wave 3 is beginning now, and I expect it to itself take the form of 5 waves. I present two alternatives. We should be heading down to close one or both of the two gaps that were opened in the bear market rally.
So, two possibilities in purple there. The more bearish has us going lower faster. The orange line you see is the bull market trend line that goes all the way back to the 2009 lows. That should provide some resistance. The counter rallies that we see once we start heading lower could last anywhere from an afternoon to a few days, but I wouldn't expect too much more than that.
Best wishes, good luck, and don't forget to take profits along the way.
Wave 3, the big wave 3, could very well take us all the way to the 2007 highs, somewhere around S&P 1500-1700 or something like that. That will take months to play out. Wave 1 of that wave 3 is beginning now, and I expect it to itself take the form of 5 waves. I present two alternatives. We should be heading down to close one or both of the two gaps that were opened in the bear market rally.
So, two possibilities in purple there. The more bearish has us going lower faster. The orange line you see is the bull market trend line that goes all the way back to the 2009 lows. That should provide some resistance. The counter rallies that we see once we start heading lower could last anywhere from an afternoon to a few days, but I wouldn't expect too much more than that.
Best wishes, good luck, and don't forget to take profits along the way.