I was expecting the decline to begin today but obviously I was early.
Just the same the market is due for the decline to begin soon. The recent impulse down lasted 8 days and we can expect a correction to last about 4 days, and this has just been completed. I favor the Energy, Transport, and Financial Sectors as leading indicators of general market direction and they have all had lackluster performance since the Nov. 2 bottom. The market has also advanced to touch the bottom of the trendline from the Mar. 9 low, a common tendency in reversing markets.
The ABC (3-3-5) Running Flat Up from the Nov. 2 bottom might look better as a WXY (ABC-X-ABC) Combination, but in either case the market is probably at a turning point of Minor or Minute Degree. As discussed yesterday, the market could be throwing in an X-Wave Down to be followed by another ABC in a triple combination to spin away more time but this would only occur over only another day with modestly higher highs.
Please see the chart below for the Primary Count on the S&P.
Click on the chart for a sharper image.
Yesterday I was expecting the beginning of a dramatic sell off and Minute Wave [iii]. This was in part because the S&P had a Full Count with an Ending Diagonal closing the last wave. The Ending Diagonal Pattern is usually a very reliable Elliott Wave Structure but it has been a disappointment this time.
I believe the markets are very close to a turn. The market should be at or very near to the end of Minute Wave [ii] and the market should turn down dramatically soon.
Pat McNeill
http://patmcneill.blogspot.com/
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