Wednesday, April 11, 2012

S&P 500 ~ Elliott Wave Count ~ 11 April 2012

We got another huge sell-off yesterday and are now already in the middle of my target for this fourth wave. As mentioned about a week ago, a break of 1390 would confirm that 1420 was the top of wave 3.

Wave 4 should end anywhere between here and 1340. This doesn't mean that the SPX can't fall further though!

As you can see in the chart (orange circles) medium-term lows are often followed by a huge rally the day after. You could go back further and look at the lows in 2010/11. It's almost always the same pattern. So I hope we'll get the same pattern again this time.