S&P500 ~ long term wave 4 correction continues...


For 18+ months we've been watching the SP basically go nowhere. The parabolic move in late 2017 had all the characteristics of a third wave as labeled on the chart. Since that time we have patiently watched for signs that wave four had formed and that wave five had begun. 

 The three wave decline into last December could have been a large three wave w-x-y flat completing all of wave four. However, three wave patterns down and up are all that we have especially with the recent new highs that bumped against the trend-line counting as only another three, so far.

 Our primary count because of this has been and still is that wave four is still in progress. If this is correct then we could see a large expanding triangle structure that needs one more three wave move down breaking the December low to form wave-e. 

 These patterns are rare with the last one being in the late 1960 early 1970's which in our opinion was a "cycle" degree with the current triangle being at the "intermediate" degree. 

 Our alternate count is that the current rally will eventually start to form an impulse or diagonal structure that we can confirm as the long awaited fifth wave.

Follow the trend
and
"Trade Safe"


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