SPX fell of another 2% and made the lowest close in 2014. Many issues like China loan having default on Jan31, US uncertainty and awful job results.
Based on Elliot Wave analysis, Upon looking closely SPX, we are still considerating that 1850 peak could be the end of Primary Wave III. BUT, DOW JONES don't confirm the count since it overlapped and made a violation. If I am to re-model Elliot Wave Theory, I would gladly accept overlap with a strict rule that it does not exceed 0.3% above/below the limitation. We will gladly know in weeks time if what could be forming. (60% chance)
Another count brewing is that the 1850 peak is just the minor wave i of int wave v of major wave 5. If SPX does not get below 1767 (15703 for DOW), this could is still the best case scenario and is just the minor wave ii of int wave v. (40% chance and getting less)
There are only 3 waves down as of this moment so a quick bounce back to 1835 is needed to make this market bullish, and a continuation of 5 waves down could trigger a larger selloff in medium term.
This could be it!! Things come along when unexpected, and the long wait correction could be it!
Lets make this simple, for:
BULLISH people: 1767 (15703 for DOW) is a must hold support
BEARISH people: 1767 (15703 for DOW) must get below this support or just make a scary 5 waves down.
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