On July 1st I posted the Elliot Wave Count since the Feb highs to July 1 and outlined the future path DOWN.
This is an update on that post zooming in on the minute wave counts down from the recent wave 2 (of 3 of C DOWN).
On the left is the same chart (also see a link to that post below) where I have not moved my projections (see red line down of wave 3 shown).
As can see so far we are nicely following along that path.
I believe today marked the top of minute wave 2 of wave 1 of 3 (of C) down which formed a complicated series of 3 wave moves in a corrective TRIPLE ZIGZAG.
Wave 3 of 1 of 3 of C down is next and I have shown the Fibonacci 1.618 projection of the size of leading diagonal wave (I) form today's corrective (ii) up.
The Trendline shown on the daily chart has been respected and next major waves are DOWN from here.
If this count is correct we should close the week on a solid red candle down and resume the drop next week with more minor corrective bounces punctuating the drop.
RALLIES ARE TO BE SOLD HERE ON OUT!
VIX is bottoming out in minor wave 2 UP also and I am expecting a massive volatility spike coming in the next few days which confirms the above S&P count DOWN.
VXN is still not confirming the new highs in the NASDAQ100 (NDX) which signals a bearish divergence and a top in the NASDAQ should be right around the corner and the NASDAQ will follow the DOW and S&P DOWN.
All the sentiment indicators I am following (Put/Call Ratios De-trended, Daily Sentiment Index (Trade Futures.com), Dumb Money confidence, Sentimentrader.com's CNN Fear & Greed Index PROXY, etc .) are all showing still extreme bullishness with plenty of room to drop before bearish extremes are reached.
The BEARS are about to be rewarded for their patience.
Cheers!
Cyrus
This is an update on that post zooming in on the minute wave counts down from the recent wave 2 (of 3 of C DOWN).
On the left is the same chart (also see a link to that post below) where I have not moved my projections (see red line down of wave 3 shown).
As can see so far we are nicely following along that path.
I believe today marked the top of minute wave 2 of wave 1 of 3 (of C) down which formed a complicated series of 3 wave moves in a corrective TRIPLE ZIGZAG.
Wave 3 of 1 of 3 of C down is next and I have shown the Fibonacci 1.618 projection of the size of leading diagonal wave (I) form today's corrective (ii) up.
The Trendline shown on the daily chart has been respected and next major waves are DOWN from here.
If this count is correct we should close the week on a solid red candle down and resume the drop next week with more minor corrective bounces punctuating the drop.
RALLIES ARE TO BE SOLD HERE ON OUT!
VIX is bottoming out in minor wave 2 UP also and I am expecting a massive volatility spike coming in the next few days which confirms the above S&P count DOWN.
VXN is still not confirming the new highs in the NASDAQ100 (NDX) which signals a bearish divergence and a top in the NASDAQ should be right around the corner and the NASDAQ will follow the DOW and S&P DOWN.
All the sentiment indicators I am following (Put/Call Ratios De-trended, Daily Sentiment Index (Trade Futures.com), Dumb Money confidence, Sentimentrader.com's CNN Fear & Greed Index PROXY, etc .) are all showing still extreme bullishness with plenty of room to drop before bearish extremes are reached.
The BEARS are about to be rewarded for their patience.
Cheers!
Cyrus
