Abet Chichi2

[DiscoverGold]

For those who follow Elliott Wave analysis:

Traders should expect to get whipped around this week

* September 19, 2016

Just like all corrective action in the market, this one is expected to be no different. It will present us with a day where the bulls will celebrate the resumption of the bull market, only to be followed by a day where the bears will be cheering in celebration. In fact, this is the type of action where many overtrade the market, and make a lot of mistakes. Yes, this is the nature of corrective action, and, in the end, all the market wants to do is sucker you and take your money.

Ralph Nelson Elliott's research explains that corrective action is extremely variable and not easily tradeable. But being able to recognize that we are in a corrective period within the market does provide us with valuable information, since we know to expect the unexpected. So, while I will maintain an open mind to the possibility that the pullback has completed, my primary perspective is that we will see more whipsaw over the coming week, which will set us up to drop in a c-wave down to the mid to low 2000 region on the S&P SPX, +0.50% to complete this pullback.

Currently, I view us as being within a b-wave of the wave ii correction, as noted on the 60-minute chart linked below. The support levels within this b-wave right now are 2119SPX, with 2096SPX below that. As long as we do not breach 2096SPX, I can maintain that this b-wave whipsaw will continue, until we break below that level, and head down to the lower target box for the c-wave of this wave ii.

Alternatively, should the market be able to complete 5 waves up to the 2200-2220SPX region in the coming week, then I will have to view the correction as potentially completed, and the larger wave (3) will resume to the 2350 region next.





http://www.marketwatch.com/story/traders-should-expect-to-get-whipped-around-this-week-2016-09-19?link=MW_TD

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