SPX Correction (ABC Wave Pattern) Part 2
So far, Elliott Wave Theory has done an excellent job of predicting the recent bear market. There was a clear five wave pattern down from A. B retraced exactly 0.618 (the golden ratio) of A. Elliot Wave Theory predicts that we are currently on Wave C, assuming this an ABC pattern. If C extends farther than 161.8% of wave A, the ABC correction pattern is invalidated and a five wave pattern is in progress. This would be the "crash" scenario.
Please see my previous chart for possible Wave C levels. For this chart, I chose 4000 as the most likely level. Given the market action today, it appears a temporary bottom could be forming, and there could be a bounce up to the area shown by the green arrows. I don't see the market continuing higher given fundamentals (Fed policy, inflation, etc.). If the bounce occurs, the entire correction could be fitted into a descending triangle, which is a bearish pattern.
All tips are appreciated:
ETH: 0x13cd45d7d282ee0ee4635645cce2e2a566d9bed8
Please see my previous chart for possible Wave C levels. For this chart, I chose 4000 as the most likely level. Given the market action today, it appears a temporary bottom could be forming, and there could be a bounce up to the area shown by the green arrows. I don't see the market continuing higher given fundamentals (Fed policy, inflation, etc.). If the bounce occurs, the entire correction could be fitted into a descending triangle, which is a bearish pattern.
All tips are appreciated:
ETH: 0x13cd45d7d282ee0ee4635645cce2e2a566d9bed8