It is possible the S&P500 is trying to extend a bear-flag correction, as in the chart below, with a double zigzag count.
|SP500 5-Minute Bear Flat Extending|
You'll note the down wave on Friday took 42 bars, and from a time perspective, we did not even reach 42 bars until mid-day today. So, if the correction finishes properly, it would make an outstanding wave for a second wave, because corrective waves should be longer in time than their impulses. Whether that wave will be 2, or B is undetermined at this time. We don't know if an impulse or a diagonal lower is forming just yet. Regardless, the point change was rather minimal.
We sort of anticipated that (being Monday), and so over the weekend, we prepared this monthly count on the London FTSE-100. We will present that now, and hope you enjoy it.
|FTSE 100 Monthly|
Because of the following three factors, if the London FTSE is also in Primary 5, it looks and counts much more like a diagonal than the US Indexes do (at this time). We have counted it this way for three critical reasons. They are below.
- Length of wave (2), depth of Elliott Wave Oscillator (AO) at the point of wave (2) is deepest
- The Elliott Wave Oscillator currently diverges at the highs
Thanks and have a good evening.