According to the Elliott Wave Principle, if third of wave, goes beyond channel of the current trend - we have definitive proof of the extension in this wave. Sometimes - when I am looking for an idea for a play - I think of my master. Ralph always said - sell the extension! The problem is the range of the third wave. Maximum easy to determine - from 2120 to 2140. Minimum has long been realized.
I continue to observe increased negative divergences between stock prices to rise and indicators that I follow. The sharp rise in recent weeks was parabolic and left several "gaps", days when the indices opened to a value higher than the previous day's closing leaving a space. The parabolic ascents do not end well and this will be no exception. There relevant gaps in the S & P500 in 1905 points, the Dow Jones in 16,401 points and the Nasdaq 100 in 3872. This tells me that the indices will fall substantially in the next relevant decrease for at least these values, then possibly exceed the minimum of 15 October.
The S & P 500 has strong resistance at 2,094 points and the Dow Jones in 18,300 points, the indices can not reach these levels.
The reversal may begin soon, problably in the beginning of January 2015.
jose.vidaes
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Thanks for commenting that his thoughts are starting to help us much.
A beginner to Elliotista
A-shot
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October may be it
A-shot
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You recommend selling in the pink zone? it is still in extension range
jonatsgonats
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Very bullish into Wave 4. Just 1600 intended pullback? :D
A-shot
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a) Wow thats a stretch indeed
b) Wow thats a low indeed - 1600 is like 20% discount. Crash?
c) Wow - glad to see that you care about the viewers and posted related education material. Top notch !
elliottwave.com/tutorial/Lesson2/2-2.htm
&
thepatternsite.com/EWExtension3.html