Short Term Trading Member Forum

[techcharter]

SPX Bear Rally E-waves

The bear market rally out of the March '09 lows is more of a WxY than an ABC. WxY is more complex, where ABC is a textbook case such as flats, triangles, zigzags, and double zigzags. SO here goes...

Wave W was march low to June hi.
Wave X was a zigzag correction into the July lows.
Wave Y is complex

Wave w of Y from July low to September high was a zigzag. The zig was separated from the zag by a flat through most of August.

Wave x of Y from September hi to October low was also a flat, but of a larger degree. Wave c of the flat was an ending diagonal, followed by a sharp rally.

Wave y of Y from the November lows may still be under way.

This wave count nicely handles the overlapping waves from August through October.

http://stockcharts.com/h-sc/ui?s=$INDU&p=D&yr=0&mn=11&dy=0&id=p09912470752