With the entire world a bit shaken by everything in it including the S&P 500 Index now would be a good time to see how the market has previously turned the corner after being clipped by a “Black Swan”.
I’ll start with the monthly chart which will update monthly, weekly, daily, etc. Technical Indicators I enjoy using include moving averages, Williams Alligator, Gaussian Channels and occasionally the VSRS. I might also use ADX and RSI, occasionally.
This chart includes a reversed Fibonacci Retracement Scale along with both Elliott Impulse and Correction Waves retracements of the SPX going back to August of 1982 to help us keep a calm and level mind going forward.
If you take notice you will see the market is still well above the blue 100 EMA however you can observe the market has been below it several times in the history of the SPX as well as the red 200 EMA.
You might also recognize the Elliot characteristics in the Elliott Impulse Wave from Aug 2009 up to the past ATH of 3393. Notice point 2 does not drop below point 0 at (c), that leg 3 is the longest, that leg 1 and 5 closely match in length and that it is also the start of the Elliott Correction Phase.
Is there anything that could substantiate that? There is. The Elliot Correction Phase has undeniably begun. The low for March was a measly 162 points above being a full 50% Fib Retracement. That same low also dove below the last Elliott Impulse Wave 5.
The refreshing thing I think is the Elliott Correction Wave is a simple path to follow.
Hope to see all of you as we progress forward.
Remember. This is not trading advice. Please engage the like button and add your comments below, Follow me if you wish, share it if you want.
