In the EWT trading room I have observed the Wizard racking the brain over "nesting" of 1s-2 in the ES & NQ futures. I have been tracking my own patterns, but as has become evident, standard fib levels are not behaving. Not only this, they are being breached in some of the most bearish ways possible, even by the most conservative counts. Assumed wave 3s extending to 1.618s OF LARGER MAGNITUDE 1-2s! for example. This is apparently not typical.
In our weekend update, I looked at a chart where the initial 1-2 off the high of 4634.50 was labeled as an Intermediate (1)-(2). That was the impetus for this idea. Apparently based on nothing but whim and some idea that equal, opposite moves made most sense, I just assumed that the nesting was taking place within the Minor 1...but now I got to thinking.
Since I have a working trade count on my ES chart and only basic, I jumped over to the SPY chart, which I have been using to theorize and count what appears to be the bull's view (in full color, except Primary ABC and subdivisions of Primary ((C))) with what appears to be the bear's view (in pale color).
Calls for new highs persist, even in the face of detached technical and faltering fundamental information. There is no NEW catalyst on which to blame such a crash, so how could this happen? It could happen for the same reason the COVID crash happened, which was not COVID...it was fear, apathy, boredom, and in general, a shift in sentiment. I personally believe all news is either fake or intended to deceive, but will immediately digress to say, this is one cornerstone of Elliot Wave Theory that has swayed me from my normal life to devote my time to the markets. A tenet of EWT is that market moves happen based on mass psychology and human nature. I believe that. I also believe these movements are predictable.
While my primary count is a bit more complex than this, I think it is worth taking a look at what could transpire at the drop of a hat, just like it did in 2020.
To close, I will respond to anyone who thinks that the 2020 crash was because of Covid. I would just point to to the volumes of articles and research surrounding the crash of 1929. One thing you will notice is that there had and probably had never been more positivity surrounding the USA and their markets, at that time. Top to bottom, everyone was positive. That is still, by far, the most traumatic stock market event in our history. Among many other things, what followed was RN Elliot devoting his later life to answering the questions, WHAT MOVES THE STOCK MARKETS. His answer was wholly detached from fundamental news.
Best,
Cuz
In our weekend update, I looked at a chart where the initial 1-2 off the high of 4634.50 was labeled as an Intermediate (1)-(2). That was the impetus for this idea. Apparently based on nothing but whim and some idea that equal, opposite moves made most sense, I just assumed that the nesting was taking place within the Minor 1...but now I got to thinking.
Since I have a working trade count on my ES chart and only basic, I jumped over to the SPY chart, which I have been using to theorize and count what appears to be the bull's view (in full color, except Primary ABC and subdivisions of Primary ((C))) with what appears to be the bear's view (in pale color).
Calls for new highs persist, even in the face of detached technical and faltering fundamental information. There is no NEW catalyst on which to blame such a crash, so how could this happen? It could happen for the same reason the COVID crash happened, which was not COVID...it was fear, apathy, boredom, and in general, a shift in sentiment. I personally believe all news is either fake or intended to deceive, but will immediately digress to say, this is one cornerstone of Elliot Wave Theory that has swayed me from my normal life to devote my time to the markets. A tenet of EWT is that market moves happen based on mass psychology and human nature. I believe that. I also believe these movements are predictable.
While my primary count is a bit more complex than this, I think it is worth taking a look at what could transpire at the drop of a hat, just like it did in 2020.
To close, I will respond to anyone who thinks that the 2020 crash was because of Covid. I would just point to to the volumes of articles and research surrounding the crash of 1929. One thing you will notice is that there had and probably had never been more positivity surrounding the USA and their markets, at that time. Top to bottom, everyone was positive. That is still, by far, the most traumatic stock market event in our history. Among many other things, what followed was RN Elliot devoting his later life to answering the questions, WHAT MOVES THE STOCK MARKETS. His answer was wholly detached from fundamental news.
Best,
Cuz
