As you can read in this large post,our count from 10.30.2011 is been validated by today's post from stockchart market message.
We have not been posting last days because our hollydays vacation and also because this days (we hope last bullish days) are very tricky and we can bored our readers with endless counts.
Sunday, October 30, 2011
ARTHUR HILL EW COUNT, FROM TODAY MARKET MESSAGE:
SPX ELLIOTT COUNT SUGGEST CURRENT ADVANCE IS CORRECTIVE... Link for today’s video. It is time once again to open Pandora’s box with some Elliott Wave analysis. First, note that there are only three rules for Elliott Wave Theory.
Rule 1: Wave-2 cannot retrace more than 100% of Wave-1.
Rule 2: Wave-3 can never be the shortest of the three impulse waves.
Rule 3: Wave-4 can never overlap Wave-1.
Everything else is just a guideline open to interpretation. Chart 1 shows the S&P 500 as a 5-day EMA to smooth out fluctuations. Looking at the entire bull run since March 2009, it appears that the S&P 500 is currently in Wave-II of a bigger five wave decline or Wave-A of a bigger ABC correction. Both scenarios are bearish. First, let’s step back and look at the first five-wave sequence. Wave-I extends from the March 2009 low to the June 2009 high and Wave-II extends to the July 2009 low. Waves III and V form clear five wave sequences, which means they are impulsive or part of the bigger uptrend. Things changed when the index forged a five-wave sequence during the decline from early May to early October. Five wave sequences can only be part of a bigger decline, which implies this decline was Wave-A of a bigger ABC zigzag correction or Wave-1 of a bigger five-wave decline. Either way, the implications are rather bearish and project a move below the October low in the coming months.