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Tuesday, October 27, 2020

Elliott Wave Update ~ 27 October 2020

 There is something different about the decline from the recent peak where we have [ii]. It has been a steady progression versus the declines from 1,3 and 5 which were violent and steep. So far we have true "stair-stepping" in EW fashion perhaps.

The CPCE is incredibly, stubbornly bullish. This is real money betting big on continued upside. But look at that elevated VIX. As was suggested earlier this year, a sub-20 VIX may be unattainable for years to come.  Perhaps a higher state of agitation exists within  the population and the VIX perfectly reflects that.

Note the sub-20 in the runup to February 2020. I think that calmer state of being is gone. This higher state of agitation can result in huge market moves. We've seen our share of huge moves to the upside this year (and of course to the downside). But it is not a calm market. SPX at 3400+ and VIX at 30+!! Not your father's market.

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