Typically, 2 of 3 three impulsive waves will equal in length. With wave four looking to be complete. We can project a move down based off that. A 2.4% decline in wave one has us roughly around the 285 area. That would also mean a truncated 5th, and a sign of a strong bullish move that would likely bring new highs+. Being how unlikely that does seem, we look for a possible 5th wave extension here.
1.618 gets us an essential double bottom from the pre market lows 277.37.
Extend to the 2.618 line and we end up with a 270 or 272 target. Both have been respected as major pivot points over the past year. Both would give us roughly that 8% decline we seen from wave 3. And possibly most importantly 272 will smack us right off this long term trendline (or as some like to call it, channel) that the markets have bounced off of numerous times. A sell-off now would also mean a rejection of the rising wedge that was just broke, again, another big red flag.
Not a ride or die EW guy, but it seems to be more accurate on sell-offs, so lets see how this plays out.
*NOT Trade Advice/Recommendations, always do your own analysis!*
Little bit easier to see the ABC zigzag correction on the Futures. Could argue this was all an extend 3rd in the C wave though. Aww the beauty of objectivity in EW.
1.618 gets us an essential double bottom from the pre market lows 277.37.
Extend to the 2.618 line and we end up with a 270 or 272 target. Both have been respected as major pivot points over the past year. Both would give us roughly that 8% decline we seen from wave 3. And possibly most importantly 272 will smack us right off this long term trendline (or as some like to call it, channel) that the markets have bounced off of numerous times. A sell-off now would also mean a rejection of the rising wedge that was just broke, again, another big red flag.
Not a ride or die EW guy, but it seems to be more accurate on sell-offs, so lets see how this plays out.
*NOT Trade Advice/Recommendations, always do your own analysis!*
Little bit easier to see the ABC zigzag correction on the Futures. Could argue this was all an extend 3rd in the C wave though. Aww the beauty of objectivity in EW.