This may be my final attempt to classify the covid rally from a traditional elliott wave bearish standpoint. The length of the rally has far exceeded all expectations and can really only be comparable to the initial rally during the 1929-1932 crash now. However, that rally only made it to about the 0.5 fibonacci, whereas we are approaching a double top today.
I attempted calling the top after what appeared to be a "zig zag" pattern in May. That was a failure.
I then attempted calling the top after what appeared to be a "double zig zag" in June. That was also a failure.
Today, the last remaining bearish wave count I can come up with is the rare "triple zig zag" that should end very soon, likely after filling the gap at 3330.
There may be other bearish possibilities, but they go beyond the scope of my knowledge.
Therefore beyond the triple zig zag formation, the next most bearish scenario I could see is a fifth wave to ATHs. All other alternatives would be even more bullish.
Given the current socio-economic conditions, sentiment measurements, extreme technical levels, choppiness, divergences, and bizarre cross-asset correlations, I still have an incredibly hard time seeing how we are still in a 12 year extended bull market. However, the price action continues to defy all of these odds, so what can I say!
Good luck with your trading all!
I attempted calling the top after what appeared to be a "zig zag" pattern in May. That was a failure.
I then attempted calling the top after what appeared to be a "double zig zag" in June. That was also a failure.
Today, the last remaining bearish wave count I can come up with is the rare "triple zig zag" that should end very soon, likely after filling the gap at 3330.
There may be other bearish possibilities, but they go beyond the scope of my knowledge.
Therefore beyond the triple zig zag formation, the next most bearish scenario I could see is a fifth wave to ATHs. All other alternatives would be even more bullish.
Given the current socio-economic conditions, sentiment measurements, extreme technical levels, choppiness, divergences, and bizarre cross-asset correlations, I still have an incredibly hard time seeing how we are still in a 12 year extended bull market. However, the price action continues to defy all of these odds, so what can I say!
Good luck with your trading all!