S&P 500

Today let me get a little technical for the students of Elliott Wave. There are a few different ways to count this rally but all are corrective so far in the S&P. Number of legs up are 11 and that is 3+4+4=11 an extended corrective move. Now a compex move like this can be marked as a-b-c-x-a-b-c-x-a-b-c = 11 moves. But when we make this combination into a short form for ease of reading we mark it as, w-x-y-x-z where each a-b-c is w/y/z, and each x is a pause in a small a-b-c not visible on this time frame but on a smaller time frame. w-x-y-x-z is 5 waves then, visible on a higher time frame, like a weekly chart. So on a higher time frame we may see that 5 wave move as a trend. For this reason while we may start from a higher time frame to a lower one we have to verify the lower ones for the existence of the structure.

Recently many people are sending me wave counts online and marking the Nifty as impulsive and I just ask them if they have checked wave 1 to break up into 5 waves. Imagine the Niffy rally from 9951 TO 11762 as a 5th wave, there is no way I can subdivide the rise into 5 waves inside the 5th, so I mark it in blue as A-B-C. Still if someone marks it and they has a debate about it without having looked at the lower degree and verified the possibilities, they he is wasting time. It has become easy for people to express their opinions on a chart with markings, but is a multi time frame fractal. That is way EW is a lot of work.