SPX 2018 Elliott Wave Review

 

 

SPX is another SP500 type index. IVV is also a Sp500 related ETF.  It was the January 2018 peak where my Cycle degree wave 3 resides. What followed was an expanded type top, which most USA indices displayed as well. The last 8 months were very bullish with record new highs, which has now reversed. “C” wave crashes have a tendency to do exactly that, so this bearish move is not a surprise at all.  Any company inside the SPX will also get trashed, as all the high fliers have crashed as well.  I don’t think we are at wave 1 in Minor degree just yet, but it can easily be adjusted at later date. The choppy 5 waves you see ending in October, are diagonal waves which are also an indicator that the SPX ran against the larger trend.

There are forecasts being made to stay in for the “long” haul! Investors will suffer huge losses and could end up waiting 3-4 years just before we hit a major bottom. Can investors handle a 70-75% stock market crash? Every major top, since 2000 had the experts telling us to stay in for the long run. The only reason we get told this is because the experts have no clue how deep any correction can go. The stock bubble mania has ended folks, and from here on, the younger Millennial crowd of investors are going to take some serious hits if they are still invested.

The function of stock markets declining is deflationary, just like in 1929-1932 and in 2007-2008.  If any boomers are still invested then, they will get wiped out as boomers are retiring at a rate of 10,000 per day!

We are looking at a potential Cycle degree decline in the next few years, and it will not stop with a simple 10% correction. A 40% correction will not do it as well, even though 40% is my standard wave 4 correction depth.

 

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