Am I being Alarmist?

 What if this IS the correct Elliott Wave Count? If it is , the counter rally, possibly a wave 2 up, will be followed by an accelerating wave 3 down.

click to enlarge

 Note the Long Term RSI negative divergence. 

Even if the above is not the existential penultimate Wave -5-, of 5 of V, and is merely a sub wave, a pullback to the 4th wave of lesser degree, is somewhere between 2200 and 3400!

Daily


 click to enlarge

 Note the negative divergence on the RSI.

A .618 retrace AND a failed test of the very long term upward trend line suggests a high risk of further downside. 

Fib targets and extensions? If we're seeing a relatively bullish a,b,c correction down, equal legs would project to roughly 4000. If we get a 3rd wave down it could do a 2.62 extension hitting 3000.

Its not every day you get all the innovation in the Finance space we saw last year. 

And its not every day you get the combined drop off in fiscal and monetary stimulus we will see in the next year.

 

 





Comments

Popular posts from this blog

WTI Update- a 4 Handle Future?

Biden Climate Plan and Global GDP

Crude Oil Update