I am a little confused now. You showed 2 charts of the
S&P. In the first chart it shows that we are in wave 3 of 5 and
in the second chart it shows we are in 5 of 3...is this
correct.
frank- yes and yes. Remember the wave 3 of 5 is of a
smaller time frame, think of it as minor subwave 3 of wave
5.
Now on the larger time frame, we are in wave 5 of major wave (3)
which began at the May top (see the chart). When we put in a
bottom, it will be wave 5 of major (3).
As far as wave 4, well wave 4's can be tricky and wave 4's ABC
up. Wave 4 cannot retrace above the low of wave 1, if it
does, the count is invalidated. Use Fibonacci retracements
from the wave 2 at 917.
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Tonight Update
Posted by frank on 20th of Nov 2008 at 10:57 pm
Matt,
I am a little confused now. You showed 2 charts of the S&P. In the first chart it shows that we are in wave 3 of 5 and in the second chart it shows we are in 5 of 3...is this correct.
Any idea how high wave 4 should take us too ?
frank - yes and yes. Remember
Posted by matt on 20th of Nov 2008 at 11:12 pm
frank - yes and yes. Remember the wave 3 of 5 is of a smaller time frame, think of it as minor subwave 3 of wave 5.
Now on the larger time frame, we are in wave 5 of major wave (3) which began at the May top (see the chart). When we put in a bottom, it will be wave 5 of major (3).
As far as wave 4, well wave 4's can be tricky and wave 4's ABC up. Wave 4 cannot retrace above the low of wave 1, if it does, the count is invalidated. Use Fibonacci retracements from the wave 2 at 917.