Bobby,
RE: Wave 4 possibility on the SPX:
Yes, it is a possibility that we're still in wave 4 of 1 of A, and haven't even begun wave 5 yet. From Aug. 4th, wave 4 would be labeled as a 3-3-5, with the first two 3's (or ABC's) just having completed on Friday's low. That would put us in the 5 wave C move higher now.
What's great about this possibility, is that under either read, we should be looking for the completion of a sizeable 5 wave move off Friday's lows, followed by a dramatic collapse in the markets. The scenario you raise of wave 5 of 1 of A not having started yet may be more logical, as we just haven't covered enough ground to the downside yet relative to '29 & '66's completion of 1 of A.
No matter what, an amazing short opportunity, the Big Kahuna, now lurks just around the corner. Nailing the top of this C wave will be quite a challenge. 1135SPX/8850Dow looks to be the max to me, with a completion within 2 days to 2 weeks. What are your indicators telling you for time and price?
Regards,
David |
