THE COUNTS
There are 2 primary ways to label the Wilshire 5000 at the moment and they are both practically the same count just differing locations of Minor subwave markers.
The “classic” extended fifth wave has wave (5) extending twice. In other words where Minor 1 of (5) is marked, it would have made for a good wave (5) peak but it didn’t quite peak there and thus it became the first subwave 1 of (5). Then when we get to where another wave 5 of (5) spot is, it didn’t quite peak and then that becomes yet another subwave [i] of 5 of (5). In this count, it can only extend twice as shown. There shouldn’t be a third such extension. You can see in how the market it starting to lose momentum and is no longer rising overall upwards at the same angle as before.
In theory, an extended fifth wave of this magnitude foretells of impending exhaustion and doom. It has stretched itself in both price and time thus cheating nature in sense. All that expended energy will be paid back rapidly in full and usually with interest. In this count, the bearish outcome is a rapid price collapse back to beneath where wave (5) started. At the moment, that is about a 33% price collapse. A bear market +.
All the greedy mom and pop 401K’s who are so complacent and lazy and trained to “stay put” will do just that.
But a real bear market inflicts pain on even the most ardent of dip buyers.
Just like everyone sins, everyone has a sell point where they can endure no more pain. The coming bear market will test the world for each person’s selling point.
And thus the weekly would look like this:
Wave [5] is much out of proportion indicating it has extended and now obvious since it blew prices above the upper channel line and has been persistent.
And another view of the weekly:
The other acceptable wave to label is also an extended (5) yet the minor waves are just in a different position.
Possible Squiggle.
