Another new month has started and we are heading into a new moon this weekend. So far the patterns still suggest a correction is happening, which means that the markets or SP500 can still breakout to new record highs. Even though the DJIA and the SP500 can travel the same way, they still have chart differences that can give them two different wave counts.
Chances are good that a small expanded pattern has happened, which means another push to the upside should also happen as expanded patterns can be very bullish. A small degree expanded pattern can get us a small degree 5th wave up, so we don’t want to think that this market is going to the moon.
Any price level above 2110 will be plenty to confirm many of the past wave patterns, with the potential for my “B” wave in Primary degree to find another parking spot. Sure, we want lifetime free parking for my “B” wave, but we know that, that can be wishful thinking. Many of the Elliott Wave analysts are after a “B” wave top, but the difference is the degree that we think we are in. All EW technicians that think they are in some SC or GSC degree world must get or the market must provide them with a run of 5 waves down in Primary degree.
These 5 waves down in Primary degree is the only pattern that they must get to even start to confirm that they are in a SC or higher degree position. The difference with my wave counts is that I am looking for 5 waves down in Intermediate degree, finishing at a potential 4th wave bottom in Cycle degree.
Since the 2007 top, and down to early 2009 to a potential 2016 top and then to the next major bottom, can be a single expanded flat. As I have repeated it many times, that once expanded flats are played out, they can be extremely bullish with the development of the 5th wave. This is all drawn out on a static page which will give readers an idea of some of the language I will be using.
The problem with SC degree counting, is that it breeds complacent wave counting. Once they find out that they have 5 waves and only DOW 6000, they may just think they are in a wave 1 position in Primary degree. If this turns out that way, then they will be making the same major mistake as they did in March of 2009. Screaming DOW 1000 while DOW 6000 has just been hit, will tell us that SC and GSC degree wave counting will fail again.
You will be left holding the bag as the new bull market soars and keeps right on going.