T/A ETF AND INDEX

[POKERSAM]

IF the decline from 1850 to 1737 was five waves then it was a wave 1 or a wave A. The bounce from 1737 would then have to be all or part of a wave 2 or a wave B. This would mean there is a wave 3 or C down to come. Wave 3 or C will make a new low below 1737.
In both cases a wave 2 or B is the one that gets everyone. They are the big foolers. It is always believed the previous counter trend move is over, in this case down, and there is a new high coming. The psychology of 2s and Bs never seems to fail.

IF the decline from 1850 to 1737 was three waves then there are two options.
The decline from 1850 to 1737 was all of a correction and we go up to new highs.
OR the decline from 1850 to 1737 was wave A of a flat and B and C would follow..

So the key question is, was the decline from 1850 to 1737 five waves or was it three waves.
IMO your bias will determine your answer.

Those with a big bullish bias will believe the down move from 1850 to 1737 was 3 waves and was all of the correction and we are now in a bull move to new highs.

Those with a moderate bullish bias will believe the three wave down move from 1850 to 1737 COULD be an A of a flat or we now go to new highs because the correction is over.

Those with a big bearish bias will believe that with the completion of the wave 2 bounce from 1737 there will be a wave 3 down in an impulse because there has been a trend change at 1850.

So in reality what everyone is doing is deciding if the decline from 1850 to 1737 was three waves or five waves. Then they decide what they think will follow.