Primary squiggle count below. Basically, the primary count is that the market is shaking off excess bearishness and setting bulls up for a massive price plunge for the next major leg down. The current wave [ii]’s purpose – or Minor 2 on the SPX – is to alleviate excess shorts and rope in any remaining hopeful longs and to yo-yo retail. Once this equilibrium occurs, there will be the least amount of market players positioned for the next major market move which would be extreme down in wave [iii] of 3. Many players will be too scared to “short” (as they are being shaken out) and we are past the point of adding many more longs to the market. The public is already fully engorged in stocks.
We can see this better on the Wilshire daily chart. The quick price plunge beneath the neckline (and horizontal support) to Minute [i] created a “trading zone”. The bottom of the zone was traded and now prices are in the middle/top of the zone. Yet we still solidly have significant resistances bearing down on prices.
Therefore, the primary count is still bearish even if prices shake out a bit more to the upside.
The top long-term alternate bullish count whereas some indexes achieve new all-time highs would probably be best illustrated with the DJIA and NYSE counts which for all practical purposes, are the same. Would the Wilshire achieve a new all-time high if the DJIA did? Not necessarily and probably not. The main factor in this would be “time” that the market “holds up” would be extended into Spring 2022.
There is a lot going for this Dow chart in terms of Elliott wave structure. We have (1) – (3), (2) – B of (4) meeting in parallel channel lines. Another aspect is that Intermediate wave (4) has a definite price low. In other words, it has formed a solid price marker for where to exactly mark wave (4) end point. There is nothing ambiguous about it. The same can be said actually of the SPX and Wilshire 5000 for that matter. If it is a wave (4) end point, we have the very price spot where it has occurred. And from that (4) low, it does appear a five wave move to Minor 1 of (5) has occurred. Not so much on the Wilshire 5000 though.
However, one reason not to get so bullish on a potential alternate count of the DJIA is that yields, and junk debt is imploding. This is not consistent with a breakout to new all-time highs. So, I remain overall bearish on the wave counts as the primary counts and also for the discussion at the beginning of this post.
Downside price target for wave (3) on US Treasury 10-year notes.
In terms of percentage, the move from the yield low of 2020 until now has been very sharp and the wave count supports even higher yields in relatively rapid succession. Before 2022 is out, I am looking for the 10-year yield to be back at 2010 levels: 3.5 or above as a minimum with the potential to be much higher. This would collapse the housing market and of course rising yields will implode the (everything) debt bomb that has been building for decades.
“That which cannot go on forever, won’t.” I don’t know who said that or if I even got the quote correct but we are nearing the end of the line for the current worldwide financial system as we know it. And we give the blokes running the world too much credit for being clever and crafty. They are not. Remember, Satanists, psychopaths and sociopaths are stupid by nature. Anyone who would willingly damn themselves for eternity by rejecting Jesus Christ as Lord and Savior is all the clue one needs.
All they are good at in the end is destruction and death. The “vaccine” campaign is proving that.
That is why once this system implodes it will take the literal – real – Antichrist to put it back together again. And in that he will seemingly succeed albeit only for a brief time.
