S&P 500 Elliot Wave

I had a discussion with some Elliot Wave practioners. The following are their interpretation of the Elliot Waves in the current S&P500 index.

Elliot Wave has 5 typical waves in the major trend (Wave 1, 2, 3, 4 and 5) followed by 3 waves (Waves A, B and C) in the countertrend.

In the bigger picture, the Wave 1 started in the 1970's and ended in 1987. Wave 3 started in 1987 and ended in 2000. Wave 5 started in 2002 and ended in 2007. Wave started in 2007 and ended in Mar 2009. Wave B is being formed and may be in the final stages. If Wave C is formed, it may break below Mar 2009 Low.

Cheers !

PersianCat (Millionaire-in progress)

Major Indices Testing Jan 2010 High

The NASDAQ Composite Index already tested Jan 2010 High. The Dow Jones 30 Index and S&P500 Index are on the way towards testing the Jan 2010 High. This High is an important milestone as a break above the Jan 2010 High dispels the hypothesis that the market is starting its major downtrend starting from Jan 2010.

However, there is still a possibility of a double top formation. We shall see what happens next.

Cheers !

PersianCat (Millionaire-in-progress)