Flip Flopping on a Corrective Wave ~ The Risk Averse Alert

Wednesday, January 04, 2012

Flip Flopping on a Corrective Wave

And right back it is to possibility that, a "complex" Elliott corrective wave has been forming since August...


Namely an a-b-c-x-a-b-c, "double three," complex corrective wave that, in this instance is developing with a slight upward bias. Of note here is how the Elliott Wave Principle's alternation guideline is being satisfied.

The first a-b-c was a 3-3-5 "irregular flat" whose "a" and "b" waves alternated in form with fine distinction prior to wave "c" peaking late-October. We've been over this one before.

The second a-b-c unfolding since late-November is likewise alternating from the first a-b-c, forming a simple, 5-3-5 "zig-zag."

Per the connecting "x" wave, the Elliott Wave Principle indicates it can be any 3-wave form. Here, again, a simple 5-3-5 "zig-zag." I was originally expecting something more involved running indexes somewhat lower, even recently supposing wave x still could be in the midst of unfolding.

Maybe, though, a prospective complex corrective wave forming wave (2) is nearer completing than yet supposed. Or, maybe a "double three" complex corrective wave will become a "triple three." Entirely within the realm of possibility.

Fast Money
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