Does Elliott Wave voodoo magic work?
Lots of people who study Elliott wave theory have conflicting counts. Many are looking for complex “4th wave patterns” ..
But is it possible that the most basic Elliott wave pattern formed under our nose without us easily noticing it?
Well, here we are with the S&P500 Futures approaching 2300, Nasdaq at all-time highs, Dow at 20,000, and Russell showing strength after 1.5 months of consolidation.
Were there clues?
Well, if you believe in Elliott Wave voodoo magic, we had what might be a textbook ending diagonal – (very difficult to spot while it’s forming) – that then reversed after completing.
Russell: Ending Diagonal
The Russell completed a 1-2-3-4-5 ending diagonal where each number was an a-b-c zig zag. We alerted a Buy right at the optimal point.
Dow Jones: Break of Descending Trend Line (more…)
The day after the Trump election victory, articles came out on describing how much Buffett made – some $11B, according to this CNBC article published on November 22, 2016.
Thought that was a lot and that it might’ve been too late to buy then?
Well, wait til you hear about how much Buffett made after this past week’s rally. Just look at the size of that December rally compared with the election rally in November in the chart below.
Today we sold off into the 4pm EST close at 2175ES (E-mini S&P500 Futures) as we had into Fed minutes for tomorrow Wednesday at 2pm. That’s the first time in a while where we ended the day at the lows.
Is that a bearish sign? And what happens next?
Well, if what happened today is a 4th wave, then it’s possible to have an a-b-c 5th wave up according to the red line.
In my prior post, I summarized the biggest opening drop of a New Year in history with this chart back in January.
We just had the worst first week of a New Year in history.