So, I have spent a fair amount of time discussing why the S&P 500 looked like it was in position to begin a wave downward. I was saying this on the assumption that we were in the midst of a corrective wave that began around February 22. This was all proven incorrect on April 25, when the S&P 500 broke through the resistance around 1485.
When this index closed above the closing price of April 20, it created an extended wave pattern. Elliott Wave Theory tells us that this would not happen in a corrective wave, so that means we have already entered Wave 5 of a pattern that began in October of 2005. Because this is a motive wave formation, the S&P 500 will have to complete a pattern of at least nine waves. That means at least one more thrust up awaits this index.
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