Mini SP500 Intraday Bear Market Review



So far the markets have made a rally before they started to turn down again last night. I know it is real easy just to turn everything into impulse waves, but as the book shows the markets also contain diagonal waves. The majority of waves, are the diagonal types, not the perfect impulse waves, that the majority wave analysts use. There is a good chance that starting out we have 5 diagonal waves heading down, and we still have wave 3-4 to contend with. They are all connected with zigzags and have a nasty habit of fooling us when a zigzag does not follow through to a new high.  Five waves down in Minute degree could lead us to wave 1 in Minor degree, which sure would make an Intermediate degree zigzag a high probability. 

The March rally could be another “AB” count, which would then connect to wave 4. In other words, we have to expect another leg down, which can extend dramatically.  The end of the month is approaching fast, and anything can happen as traders get out of positions that are going nowhere.   We need another new low to confirm the short term bearish outlook, and we may get it by the end of the week. 

Wave 4 in Cycle degree seems to be active, and it may take 2-3 years to finish. 

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