| Tracking a 5 wave move lower off the 8/14 high. 1 ended at the 8/14 late p.m. low, 2 ended 8/15 early a.m., 3 ended 8/16 around 1pm, and we've been in a wild expanded flat wave 4 since. a of 4 into the 8/16 close, b of 4 into the 8/17 late p.m. low, and c of 4 rally since. The 5 waves of c look to be either complete or near completion, but if not, that 8/14 late p.m. wave 1 end of 1184 would halt this c of 4 rally. I expect wave 5 lower to take out 1150 before the end of the week, and possibly very quick if the Fed negatively surprises. Wave 5 can be up to 6 times the size of wave 3 (25 pts.), or 150 pts., and must travel enough below the 8/10 low (1170), to allow for a sizeable bounce, as that 8/10 low is wave 1 down off the 8/2 peak, wave 2 rallied into the 8/14 high, and we're completing the 5 waves of wave 3 since. |
