The Fed is draining the life-blood out of this stock market and economy. It still amazes me when the herds decisions are based on words from the Fed. The talking heads just declared that a bottom was in a few days ago, but the markets didn’t care once Powell made his speech! Today all support failed and the SPX plunged to new 2018 lows. What I’m showing with the above wave count is a 1-2, 1-2, 1-2, wave count. I still have 5 degree levels left before I run out, but there is also a physical point where the smaller degree levels get harder so.
Sorry, I don’t have an electron scanning microscope at my disposal! 🙂 Lets say I can see one more set of 5 waves completed in Subminuette degree, then after that my entire wave counts will start to switch where we could get nothing but ending 3 waves. This is telling me that a wave 3 extension is a very high probability. I don’t like to change the settings on these charts but I can get more detail from the intraday futures charts. Even the Gold/SPX ratio is still extreme and only 49-50% bulls were present in the MV report. That’s a boring number, as at 50/50 you may as well just flip a coin.
When Minute degree wave 3-4-5 complete and wave 3 in Minor degree is due, then this will coincide well for closing of shorts. A 4th wave counter rally in Minor degree could shred gains and it is better to play with light positions. If wave 3 in Minor degree appears this year, then January could see positive inflows. The whole idea in trying to be more accurate with the degrees and patterns is so, we can catch a huge error as soon as we can. On any 5th wave, we could also start seeing really choppy waves, as Diagonals just love to make wave counting a challenge.