Monday, August 17, 2009

SPY Elliot waves

Currently we are in a Wave 3 of a downward impulse. And now we are in wave (4) of that larger wave 3. I'll look at exact targets, but wave 3 should get us to Eric's target of 96... what he is calling the potential "bear trap". This fits the model because the wave 4 may get some bulls back on board.


  1. Short term... Potential... bear trap.

  2. Thanks. Yes, I agree. This wave (4) could be bear trap... but odds are that is will be relatively FLAT and act as a low volume bear flag instead. I say this because Wave (2) corrective was steeply upward and this usually portends a flatter wave (4).