S&P500 ~ the minute degree third wave rally is near complete with wave four down ready to start next week!

Wave-(iv) of wave-[iii] took all of 5 hours to form and as is the norm lately was very shallow without coming close to any normal Fib targets. Although, you can see that wave-(iv) is about the same size as wave-(ii) or 94% to be exact. The patterns also alternate with wave-(ii) being a "flat" and wave-(iv) forming a "zig-zag."

Price didn't waste any time moving back up to form wave-(v) to further complete "minute" wave-[iii]. Today price moved up on the open and then spent most of the day forming a small contracting "triangle." Once complete the market spiked to new highs which is referred to as "the thrust" which is always seen at the end of the "triangle" formation.

The wave labels show the sub-waves-i-ii-iii-iv-and v which could be all of wave-(v). If so, wave-(v) is pretty short and hasn't reached the minimum relationship to wave-(i). However, this could be expected since wave-(iii) was the extended wave reaching and exceeding the 1.618 area shown on previous charts.

Price has backed off considerably into the close which could be an indication today was the end of wave-[iii]. The wave-[iv] correction should be the largest move down that we've seen in three weeks with targets at least back to the wave-(iv) low and possibly back to the 4100.00 area.

This will all be followed by another sizable rally to form "minute" wave-[v] of the larger "minor" wave-5. We'll be watching next week to see how well the market follows our wave labels!!!


Follow the Trend
and
"Trade Safe"

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