Grok's take on the target line sequence, which references Elliott wave and tosses in a couple T2s and T3s in place of my T1s and T2s because it's counting forward instead of backward, is interesting....
It's selected prior examples include:
"1987 Black Monday: Although a shorter timeframe."
"2000-2002 Dot-com Bubble: During the burst of the dot-com bubble, there were similar patterns."
2007-2009 Financial Crisis: The DJIA exhibited clear Elliott Wave patterns during this period. The peak in October 2007 could be seen as T2, followed by a correction and then a rise to another high in May 2008 (T3). The subsequent lows in March 2009 (L1 and L2) marked significant points in the pattern.
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Can you find prior examples of this sequence?
Answer
Based on the chart you provided, which shows the Dow Jones Industrial Average (DJIA) with a clear Elliott Wave pattern, I can analyze the sequence you're referring to. The chart indicates a potential Elliott Wave pattern with labeled points T2, T3, L1, and L2. Here's a breakdown of the sequence:
T2 (Top 2): This appears to be the second top of the pattern, indicating the end of a corrective wave (likely wave B) before the market moves downwards.
T3 (Top 3): This is the third top, suggesting the end of another wave, possibly wave 3 in the impulsive phase of the Elliott Wave sequence.
L1 (Low 1): This is the first low after T3, indicating a potential end of wave 4 in the impulsive sequence or the start of a corrective wave.
L2 (Low 2): This is the second low, which could represent the end of wave 5 or a deeper correction.
To find prior examples of this sequence, we would typically look for similar patterns in historical data of the DJIA or other major indices. Here are a few notable examples from past market cycles:
2007-2009 Financial Crisis: The DJIA exhibited clear Elliott Wave patterns during this period. The peak in October 2007 could be seen as T2, followed by a correction and then a rise to another high in May 2008 (T3). The subsequent lows in March 2009 (L1 and L2) marked significant points in the pattern.
2000-2002 Dot-com Bubble: During the burst of the dot-com bubble, there were similar patterns. The peak in early 2000 could be considered T2, with a secondary peak in late 2000 or early 2001 as T3. The lows in 2001 and 2002 (especially post-9/11) could align with L1 and L2.
1987 Black Monday: Although a shorter timeframe, the crash of 1987 showed a rapid rise to a peak (T2), a correction, a smaller peak (T3), and then dramatic lows (L1 and L2) before recovery.
Please note that Elliott Wave analysis is subjective and different analysts might label the waves differently. Also, since I currently cannot search the web or generate images due to the attached image, this analysis relies on general knowledge of market patterns. If you need more precise historical examples or want to explore other indices, let me know, and we can discuss how to proceed when the search capability is restored.
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"Less notable" examples include:
1998 Asian Financial Crisis
2011 European Debt Crisis
2015-2016 China Stock Market Crash |
