Tuesday, April 5, 2016

A,B,C, Simple As 1,2,3

This is the only valid S&P count that I can find (there may be others, but I can’t find them) which puts the DOW and the S&P at the same location in the cycle, with the DOW in a third wave – of some type – either 3 or C – at the 1.618 Fibonacci expansion.

It does contain an ending diagonal – which is a big caution sign. And the DOW can be counted the same way – with the same diagonal.

The invalidation of an upward count on this chart is the overlap of 1962. It may occur. It may not. But the market should be allowed to see if there is support at the 38% retracement level. The clear alternate for 1-2-3 upward is A-B-C upward. The EWO is not even below zero yet, but should get the for a wave 4 (or more downward).

But the point to consider, is what if a wave 4 is made, then where would that put a 5 = 1? Just food for thought … until the market decides.

Cheers! And enjoy the chart!


  1. You made my day again Joe; thanks :-)

  2. Mi biggest concern it´s that the EWO of Wave 1 it´s bigger than the Wave 3, so that why i think more in a ABC pattern.

    The market is upwards but very choppy, so until it´s clearly defined we should wait.

    Thanks for your analysis Joe.

  3. HELLO joe you can put a weekly chart
    thank you very much