FinancialAdvisor's College Class (FACC)

[AnderL]

It is more apparent on the weekly chart when correlated to momentum indicators that his numbering is correct. The dips within each wave are smaller cycles. Elliot Waves are fractal in nature.

However I would not consider his 5 count to be the market top yet. Inside his 5th wave are 3 smaller waves, (i) up, (ii) down, (iii) up). The current topping we are seeing in the market is the (iv) count. A distinctive breakout over the recent tops will herald the start of the (v) wave. If it down not breakout in the expected time frame we should see a test between 2060 to 2100. Since the (iii) was an extension wave it means the (v) will not be and we should expect a rally as long as the (i) wave (approx. 200 points). A successful test of the 2060 to 2100 level will bounce the $COMPQ back up to make another attempt at breaking out over resistance but IMO could fail as the (v) wave would be complete.

Best case scenario -
* Santa Claus rally to 2300-2400 over the next 8 - 10 weeks.
* We go into an ABC retrace that moves sideways through the year 2005 ranging between 2400 and 2200 points.

Worst case scenario -
* Test of 2060 - 2100 (wave iv), Retest of the previous high of 2170 (wave v) and possible failure\double top.
* We go into an ABC retrace that brings us back to 1630 ultimately to begin the next Wave 1 (similar to the 2002-3 rally).