S&P 500 Did we just end corrective wave or is this false rally?
Food for thought. Is the corrective wave over and we are moving on to the next major motive wave 2?
The thing that I find interesting, is the current rally from the low yesterday looks to be in 5 waves. My understanding is that up trends only happen in 5's when we are in a motive wave and not a corrective (5 up and 3 down). Corrective waves have up trends in 3 waves and down trends in 5 waves.
I checked against the rally after the "trade war" drop and we just passed its corrective wave time frame (0.25*motive wave length).
The clear breaking of the down trading channel is also normal sign of trend change. It is highly possible that the corrective wave has completed and we are in the first minor motive wave for the next major motive wave. Or, this is one major fake out. Technically, we did not make a higher high than the previous waves. It is very possible that we still have a lot of down left to go.
I just have a hard time believing we are in rally mode for next corrective wave given the massive surge in coronavirus cases. I guess that speaks to the power of the Feb pump.
The thing that I find interesting, is the current rally from the low yesterday looks to be in 5 waves. My understanding is that up trends only happen in 5's when we are in a motive wave and not a corrective (5 up and 3 down). Corrective waves have up trends in 3 waves and down trends in 5 waves.
I checked against the rally after the "trade war" drop and we just passed its corrective wave time frame (0.25*motive wave length).
The clear breaking of the down trading channel is also normal sign of trend change. It is highly possible that the corrective wave has completed and we are in the first minor motive wave for the next major motive wave. Or, this is one major fake out. Technically, we did not make a higher high than the previous waves. It is very possible that we still have a lot of down left to go.
I just have a hard time believing we are in rally mode for next corrective wave given the massive surge in coronavirus cases. I guess that speaks to the power of the Feb pump.
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FYI, by the end of the day we did make a noticeably higher high. The really long candles at the end of the day where impressive. Not sure if this was all a massive short squeeze with a big drop coming or this is the real deal.
