We got a little rally in the morning and then new lows for this downtrend later in the day. At the end, it appears we got a nice reversal pattern at the close. Assuming this current wave is over, I took the liberties of analyzing the structure of both the Nas100 and SPX to look for clues as to how to best label this down move. My best label was a corrective wave. The Nas100 gave me the best clues, but in both cases you could practically cut the move down in half at my label B. Plus, we got overlapping waves on the Nas100 which can only occur in the last wave of a move, which I labeled as a C wave. But all this is conjecture until we get a confirmation. I'm looking for ES 910 on the upside before we see any new lows. Should that not happen, then look out below.
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Hi Rich,
ReplyDeletei am a beginner in Elliott Wave. In the key notes to the chart, you mentioned w1 and w4 are allowed to overlap in ending waves. What does that mean? Are overlapping w1 and w4 allowed motive phases within a larger correction phase as well?
Great job with the blog by the way. As a person new to Elliott Waves, I find your explanations clear and concise which helps a lot!
Thanks!