but must finish the fourth wave here first.

At least the market has now confirmed the pattern and I must change the labeling. That high was an -e- wave and this is the first wave of the fifth wave down.

I have a trendline for the -e- wave, to identify wave four and completion. I figure 1283 is target, but anytime the fourth wave is in. Can be the end. Then target 1246 area.

In wave fours -abcde-

Each of those letters will unfold as:
A: can be simple -abc- or complex -12345-
B: almost always simple -abc-
C: is always impulsive -12345-
D: is the same as -A- wave, can be corrective -abc- or impulsive -12345-
E: is impulsive -12345- pattern.

In the fifth wave and down the market goes. If one wants a rough estimate where the market is going all you have to do is figure the length of wave -1- times 3=? and subtract from the top. Looks like about 1120 area.

One other thing to notice. I am asked about Fibonacci time and time again. I use only five numbers and that is only for estimates. Fractals are far much more reliable and wave patterns to tell where the market will go.

I am not expecting the fifth wave to be extended, but will be watching the pattern to see as that would make the market go even lower.

charleydan
www.sillywaves.blogspot.com