Fed warns that a ‘particularly large’ plunge in market prices is possible if risks materialize
And when have you ever heard them say that, "asset prices appear high relative to their historic ranges"?!
If you have not heard or paid attention to this information, here is the LINK, so you can see it again.
This is not me saying something, this is the central bank. Why now? What do they know that you and I don't? They get information from banks all over the U.S. and all over the world. I don't.
All of that aside, from a wave counting perspective, we were able to count five waves down in very near real time this morning. The five waves have an extended first wave, and so appear in a wedge (see yesterday charts for the updates).
|SP500 Cash - Daily - Minuet (i)|
The daily chart above shows that the minute two wave ((ii)) did have the Elliott Wave Oscillator trace back above it's zero line indicating an excellent location for a second wave up.
Today's down wave undercut the prior (x) wave low, and shows the power of a 'motive wave'. It is shorter than the minute ((i)) wave down, and therefore, can be a valid sub-wave of wave minute ((iii)) in the downward direction. After morning, the retracement of this wave of this wave began, and almost made for an unchanged close. but, not quite.
In order for wave minuet (ii) to remain a valid sub-wave, it must now remain shorter in price and time than the minute wave ((ii)). Further, it would be especially indicative if this up wave stops short of the down-trending upper channel line.
That's it for now. You know about corrections, right? They are there to try to mess everything up. If you counted a,b,c up today, remember that c waves can get longer than c = a, and remember that to extend a correction, if the market wants, it could make a double zigzag instead of a single one.
Be careful and prudent. And have a good evening.