E-wave

I am not really an Elliott wave person but have dabbled and if you search the tag there are a couple other posts on this topic. The bigger picture view is here and has not really changed. This view calls for an ideal high 2250-2500 SPX anytime from 2017 Q2 to 2018 Q2 to complete the bull market.

I 'think' the larger monthly W4 pullback is done in classic zig-zag pattern from the 5/2015 high to 2/2016 low; though to be fair, W4 might be continuing and theoretically we could see lower lows than 2/2016 and then proceed to a W5. But if my view is correct, then W5 is already in the process of unfolding.

Already it is not a strong W5 since it hasn't powered up to new highs. But it still could be a respectable move, itself subdividing. Of course the hassle of Elliott wave is the alternative count, which is why I prefer the simplicity of pivots, but the alternative is a very bearish W5 failure at the recent highs and bear market commencing from here. I will shift to this if all five USA main indexes break their YPs, but not before.

Let's say preferred view is correct, that monthly W4 is over on 2/2016 low, and W5 has begun. To clarify the context, this means the move from February 2016 lows to recent highs is itself the first portion of a larger W5 on the monthly chart. 

So now we can proceed to the daily chart view which was recently discussed here

E-wave is all a matter of labeling, but rather than get too bogged down in versions of counts I will just post what I think has happened and you are free to agree or disagree. 

The main point here is that on the daily chart view, W5 failed at 38% of W1 which is typical failure level, at the 5/10 high. (Confused? I am talking about the daily chart pattern now, so this is just the first portion ie daily W1 of the monthly W5.) Failed W5s mean a harsher drop to follow. This drop will form some zig zag ABC pattern, and in total make W2 of a larger pattern. 

Anyway, this is what I think is happening. This will imply a break of MayS1s on USA indexes, and probably higher than MayR1s on TLT. In other words, near term bearish though not giving up on bull market just yet. Once this pullback low gets established, we should see a quite decent and steady rally, possible to new highs. In E-wave terms, this rally will be w3 of the monthly W5, but we need w2 of W5 first. If w1 of W5 just completed, it is the w2 drop that we are about to see.