Taking 5 Steps Foward, 3 Steps Back

Spent some time over the weekend educating myself a bit more in Elliott Wave. A five wave move down from the October 21 high seems clearly evident. So far it has been fundamental in its manner. To remind you all a bit about Elliott Wave - and to double check above...

1. Wave 3 is never the shortest wave, typically the longest
2. Wave 4 will not enter the price zone of Wave 1
3. Wave 2 cannot exceed the start of Wave 1.

Some other relationships to describe the chart above:

• (5)'s price was 261.8% of (2). 
• (3)'s price was 261.8% of b of (2).
• (5) is 61.8% of (1) through (3).
• (2) was a flat correction while (4) was a sharp correction - the theory of alternation.

Since everything has lined up perfectly so far, it would only make sense that the correction reaches the 61.8% mark. And if A = C then our target range is 1074 - 1076.

Lets see how it plays out.