Elliott Five Wave Set up From 1040 in the Context of a Larger Pattern
In the post Elliott wave Pattern Based Litmus Test I suggested that if the move up from 1040 turned into an Elliott 5 wave set than the market could go higher after a short-term correction. I believe that has occurred and the 5 wave set up from 1040 is near completion.
Right click on chart (view image) to enlarge
The projection for even higher prices following a short-term pullback is within the context of my larger pattern interpretation. I believe the current rally to be an extension of the W-X-Y corrective pattern up from the March 2009 low which completed at 1153 on Jan 11, 2010. That was a very symmetrical pivot point in both time and price that I pointed out in a previous post and I anticipated a much larger decline from that pivot.
It is what it is, however, and in the context of a decline to 1040 after the key pivot at 1153 followed by a probable 5 wave set up from 1040, the logical wave pattern to follow is a 3 wave retrace of the move up from 1040 followed by another 5 wave set higher.
Right click on chart (view image) to enlarge
It is possible that the move up from 1040 is not 5 waves, and if more than a .618 retrace of the move up from 1040 occurs without turning back up, then it should be considered. Another consideration, which I do not support, is an impulse/motive wave set up from the March low. The reason I don't support it is because I cannot count it. If someone reading this believes they can produce such a count, I would be interested to see it.
Right click on chart (view image) to enlarge
The projection for even higher prices following a short-term pullback is within the context of my larger pattern interpretation. I believe the current rally to be an extension of the W-X-Y corrective pattern up from the March 2009 low which completed at 1153 on Jan 11, 2010. That was a very symmetrical pivot point in both time and price that I pointed out in a previous post and I anticipated a much larger decline from that pivot.
It is what it is, however, and in the context of a decline to 1040 after the key pivot at 1153 followed by a probable 5 wave set up from 1040, the logical wave pattern to follow is a 3 wave retrace of the move up from 1040 followed by another 5 wave set higher.
Right click on chart (view image) to enlarge
It is possible that the move up from 1040 is not 5 waves, and if more than a .618 retrace of the move up from 1040 occurs without turning back up, then it should be considered. Another consideration, which I do not support, is an impulse/motive wave set up from the March low. The reason I don't support it is because I cannot count it. If someone reading this believes they can produce such a count, I would be interested to see it.
Posted by TheMarketDetective at 4/12/2010 10:35 AM 
Categories: Fibonacci, Technical analysis, Elliott wave
Tags: Fibonacci impulse wave corrective wave .618 Elliott wave 5 wave set retrace
Categories: Fibonacci, Technical analysis, Elliott wave
Tags: Fibonacci impulse wave corrective wave .618 Elliott wave 5 wave set retrace
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