You wont have to wait any longer for that market retreat.
obviously last week was premature, Mz mkt had one more fling to spring
WE had noted that 1389 was fibo 78.6% of the April 1st to June 4th low, and that was mentioned way back on July 16th, but that week got to 1380, leaving the door open for one more try.
Generally speaking , we may have just seen the end of a wave C-2 formation that did end in 5 waves , which is what that type of wave is supposed to do.
NEXT OF COURSE is WAVE 3, but it STILL DOES NOT mean an instant crash.
WHY NOT ? you ask- good question- Because wave 3 can break down into 5 distinct waves of its own, but just the JUNE4th low; And can traverse many months.
How do we know we are in a correction rather than a strong bull market with much higher price levels still coming?? another good question.
When wave 1 such as the JUNE4th low breaks into 5 waves, it is NEVER the END of the CORRECTION, thus once the next fibo high at 78.6%, a very typical wave 2 price target is achieved with a retrace of that decline, we can be reasonably assured that Elliott wave precepts are correct.
SO, NOW we sit at DOW 13,000 and whats next??
STAY TUNED TO THIS STATION FOR FURTHER UPDATES
Jay
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