I like this count better since it takes a bigger picture view of the market and makes more sense. Here, wave 5 of (3) is complete and I'm projecting a relief rally soon as many will not be convinced the rally is over and attempt a new high. It will fail, creating a head and shoulders top. From there we should see a decline to the Fibonacci retracement area of 1996-2014. I'd like it to be an ABC correction, or a combination, but 4th waves tend to be flat sideways affairs, and a boring triangle is also in the cards. The pullback also aligns with my proprietary indicators which offer an internal look at the market and they show 132 stocks with bearish signals and only 14 with bullish signals.
Here is the more detailed count I had from yesterday where I illustrated the weak price action which was confirmed by numerous momentum indicators. The stock market has declined this morning as a result. With wave v of (iii) complete, I have to move the "make-or-break" point of the bullish case down to the peak of wave (i) at 1969.25. It's very far away, but if the bullish case is broken long term, I should know well before it gets to that level anyway.
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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.
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