I said I'd post a chart that shows the 5 wave impulsive declines I saw in today's trading and so here it is as promised (the wave count degree is not to scale). Notice the clean and clear 5 wave drops throughout the day on this 5 minute Dow emini chart. Also notice corrections 2 and (ii) are in three waves, or are choppy and overlapping. These are clearly corrections. So if you have a series of clear 5 wave drops, and the rallies are choppy and/or in 3 waves, then that tells us the larger trend is down.
It may be too early to say that the huge big daddy decline in wave 3 of (3) has begun already. But it's clear the larger trend in the short term is down, and market technicals are weakening significantly.
I will short the market every time I see a 5 wave decline with a stop loss at the recent swing high. I will keep doing this and getting stopped out until I catch the wave 3 of (3) decline. The decline will be so massive and fast that I can gets stopped out numerous times and still make a big profit once the wave gets going. And it will get going soon!
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