Saturday, March 15, 2014
The white vertical lines on the above chart show the dominant cycle in the SP-500 for the past 30 years or so. On the left side of the screen you can see that the cycle was due to top in March 2007, but the ultimate top didn't end up coming until October 2007. It was also set to bottom the week of April 24th, 2009, which was close to the ultimate bottom. Since then I was looking for a topping formation close to July, 2013 but the market just kept on going.
When I was looking at the chart this morning I noticed a similarity in the structure contained in each box as well as in time. Those boxes are of equal duration. Just something to keep in your mind.
I believe white wave (iii) in the chart above has completed. If the move from 2009 has been a correction, the white wave (iii) would actually be wave 5 of C per the alternate count on the chart.
I think the market will either now drop in wave (iv) or a larger move to a correction since 2009.
Counting waves with MACD:
MACD is Moving Average Convergence Divergence so you should also be able to count Elliott Waves with just moving averages, with or without price even being on the screen.
Moving averages will usually overlap on second waves and come close together, even sometimes cross, on fourth waves.
See how clean the above chart is without price bars?
Posted by James Genosky at 10:10 AM