The indices carried last week’s recovery into this week. And while today’s move wasn’t as big as the
enormous moves that have occurred with frequency in recent action, it was big enough to solidify
some things. First, it has to make us confident that the recent free-falling down leg is in fact complete,
due to the sizable nature of the current recovery. Second, this action drives home the importance of
our current location, and how price’s next move will make a massive Elliott Wave statement. That’s
because all indices have now retraced at least 38.2% of the recent down leg, or in other words, all
indices have now reached their Fibonacci retracement zones. If the indices turn lower at any point
from here, boy is it gonna look bearish. We’ll review why below.
As always, we need to think about things in terms that help us accomplish our trading/investing goals.
Obviously, those goals entail making as much money as we can in this game. In order to do that, we
want to always be trading on the same side as the market trend. As Elliott Wave followers, we know
that trends are determined by which direction the impulses are playing out. So to simplify, we always
want to trade in the direction of the impulses. Understanding this point will make it easier to
understand why this is such a big point for the wave pattern.
enormous moves that have occurred with frequency in recent action, it was big enough to solidify
some things. First, it has to make us confident that the recent free-falling down leg is in fact complete,
due to the sizable nature of the current recovery. Second, this action drives home the importance of
our current location, and how price’s next move will make a massive Elliott Wave statement. That’s
because all indices have now retraced at least 38.2% of the recent down leg, or in other words, all
indices have now reached their Fibonacci retracement zones. If the indices turn lower at any point
from here, boy is it gonna look bearish. We’ll review why below.
As always, we need to think about things in terms that help us accomplish our trading/investing goals.
Obviously, those goals entail making as much money as we can in this game. In order to do that, we
want to always be trading on the same side as the market trend. As Elliott Wave followers, we know
that trends are determined by which direction the impulses are playing out. So to simplify, we always
want to trade in the direction of the impulses. Understanding this point will make it easier to
understand why this is such a big point for the wave pattern.
