Intraday Update:
Although the market has rallied nearly straight up since yesterday’s low, I would like to remind those that recall the exact same wave structure one-two, one-two, one-two setup in 2008 just prior to the panic plunge in October 2008.
The Wilshire 5000 rallied over 11% in a matter of hours, yet it still only formed a temporary subwave [ii] peak. In today’s case, I am proposing the same is happening. This is a third wave “two” and once it peaks and reverses there will only be sellers and the shorts will be wary of more shorting.
I only show a small window on this chart so you can see the swift rally. The second chart shows the bigger picture of 2008-2009.
As you can see, the wave [ii] was the last frantic attempt to maintain prices prior to the middle part of the plunge.
Today’s chart. Obviously different timelines and price levels, but the wave structure is what matters. I propose this is the final wave (ii) peak forming prior to the plunge to come in the harshest part of a five wave move – the “third of a third”. It has rallied approximately 6.8% not even close yet to matching of the percentage it rallied in 2008. So, it has more room to run if it needs.
Hey if it doesn’t happen, we’ll know it huh?
I’ll have more after the market closes.