The major indices are making what looks like an expanding triangle (it is difficult to predict an expanding triangle before it completes). We can make some assumptions based on that:
1) The current decline is only a pullback and is considered a b wave in the larger E wave of the expanding triangle
2) Given B-C of triangle took appx. 6-7 years, we should expect the end of the E wave to be atleast 2026. ( THis is not a guarantee as I have seen instances where the E waves is slightly shorter in duration than the C wave).
3) The E wave can break the border of the A-C trendline, this may happen in the climate of inflation
4) A large-degree correction should follow the end of the E wave.
Overall, I expect the market continue to go up once this current correction ends sometime in early 2023, then we are off to the races again.
1) The current decline is only a pullback and is considered a b wave in the larger E wave of the expanding triangle
2) Given B-C of triangle took appx. 6-7 years, we should expect the end of the E wave to be atleast 2026. ( THis is not a guarantee as I have seen instances where the E waves is slightly shorter in duration than the C wave).
3) The E wave can break the border of the A-C trendline, this may happen in the climate of inflation
4) A large-degree correction should follow the end of the E wave.
Overall, I expect the market continue to go up once this current correction ends sometime in early 2023, then we are off to the races again.
Comment:
Second leg down has yet to come. I'm not as confident in this idea anymore because I think this leg down can be more than expected and we could break the lows of D.
Comment:
Still waiting on second leg down to come. I don't except it to break lows of D. If we don't have a second leg down in the 2 months, more than likely we are done with correction and going back up to finish E.
