SP500 ~ a small wave four decline today as the larger degree wave three of three continues to sub-divide...
Prior to the holidays we posted an update that said..."the most bullish week of the year (Thanksgiving) didn't disappoint bulls this year. Veteran traders know that 85% of the time the markets rally during that week but, not all traders are aware that the wave count also has to be in a position to support the rally or it doesn't happen". Fig 1. Through all of last year the market traded in a wide, sideways range making it difficult to determine if the market was still correcting from the 2018 highs or if the January 2019 low marked the end of the correction. Days before and into Thanksgiving the market moved high enough to finally confirm that the "intermediate" degree wave (5) was underway and that the Jan 2019 low was in fact the end of " intermediate" wave (4). Fig 2. Our alternate count from last year moved to the primary count as price moved above the white dashed line. Notice in fig 2 price moved above the trend-line and i...