SP500 Intraday Stock Market Crash Update.

It’s amazing how one politician’s confession to the FBI, can crash all the stock markets at the same time. The SP500 sliced right through the bottom trend line, followed by another strong rally.  The steep angle of the crash suggests that there could be a single zigzag that has developed. This could be just another correction, but we know diagonals do start this way as well.

If the stock party is over then we know that no new highs can happen, otherwise another low will this month. I don’t see any big degree expanded patterns at this time, as that may happen only with a “B” wave in Primary degree. Even that scenario is doubtful at this time. I’m looking for the A5 wave to be a zigzag,  which will contain many 5 wave sequences with connected zigzags.

The counter rally is still soaring as I post, so we have to wait until next week before anything gets confirmed.

When the markets get this violent we know it is becoming unstable. Any 5th wave can be very unstable as it is never the strongest wave, even though a 5th wave extension has happened with Intermediate degree wave 5.

In the case of the SP500 counting from the 2009 bottom, waves, 1 and 5 are about even with wave 3 still being the longest between the 3 impulse waves.