Perverse Sort of Stock Market Wave PatternStock-Markets / Stock Markets 2016 Feb 17, 2016 - 03:39 PM GMT
This has been a difficult retracement to follow. Here is the detail of what has happened.
The first Wave down from 1947.20 is clearly a Wave (a), since does not have a five wave structure. What fooled me was that I had assumed that Wave [b] was really a larger degree Wave B, which meant that Wave C of (3) would begin at 1881.60. Instead, it was the final wave [c] of A.
By yesterday I had identified the Wave B rally as a double zigzag ([w]-[x]-[y]). Wave [y] was the smallest wave and had topped out very near the 61.8% retracement level at 1894.83. What more could one ask for, especially on a double Pivot day? However, one of the Pivots was rounded down for the sake of simplifying the Model on a calendar basis. A double zigzag turned into a triple zigzag.
Today’s zigzag [z] is approaching the size of zigzag [w] at 1923.85 in a perverse twist of Elliott rules leaving the middle zigzag the smallest. If this has caused me difficulty, I wonder what the rest of the Elliott Wavers are thinking?
It is 10:40. It appears that the reversal may happen between now and 11:00 am, as I had suggested this morning. The same is likely to happen with TNX, as well.
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