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Wednesday, October 1, 2014

Elliott Wave Update ~ 1 October 2014

The primary count is that the market is forming the very first small-degree impulse waves down from cycle b top.

Simplified things up by using a 30 minute chart. We'll assume today was the "third of a third" of Minute wave [i].  We even have the "virgin wave space" as exhibited on the Wilshire5000 to mark what could become the "middle" of the entire structure.  If this space gets filled in the next few days then the count will likely change.
SPX chart. Wave (iii) - 1.618 Fibonacci at approximately 1934 SPX.  This seems about right.
Channel lines can be finicky.
First time in a long time the monthly RSI is not in overbought territory. 
Conclusion:
If cycle b has topped as we have been counting this entire summer, then the market should be forming the beginning impulse waves of cycle wave c.  Each 5 wave move should form a sub wave of an even bigger 5 wave move.  As you can see in the chart above, the biggest 5 wave move is the entire cycle wave c which should consist of 5 primary subwaves. Which in turn should consist of 5 Intermediate subwaves. Which should consist of 5 Minor waves. Which in turn should consist of 5 Minute sized waves. 

It is proposed in the counts above we are only working on Minute wave [i] of Minor 1 of Intermediate (1) of Primary [1]!

And Minute wave [i] projects to head down toward very important 1900-1910 support zone.  

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