Information Wave

How to trade for a living!

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Super Cycle Target for the $SPY Index Fund

The cycle starts from 1992 and  a low of $42.81 to the current high of $293.94 is the end of wave 3 and we are in the middle of wave 4 correction more specifically what I call an equilateral triangle right now.

$SPY-Super Cycle Chart

On a traders perspective of the chart let us take a closer look at the day to day trading plan. Wave 3 ends at the 200% Fibonacci extension of the larger 1-2 waves. Since the wave 1-2 was a simple ABC pattern the wave 4 can be expected to be a complex correction that is what the theory of alternation suggests from Elliott wave. Just going by that i expect the correction to last quite a while before we break the all time high of 293.94 to break. My best guess is that we are going to be doing what I have drawn in blue to be doing before we break out of it.  If you look at the weekly RSI it has room to run before hitting the ceiling at 60 RSI level suggests that this A wave as of 2/17/2019 has room to run. before dropping in a B wave. Where every other Elliott wave technician and I differ is that they say the market is going to surge after this ABC 3wave and another blue ABC 3 wave correction that we are going to complete the 5th wave . I believe this will be part of a more complex Ascending, descending, reverse symmetrical yet to be revealed.

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High Probability Setup on the $SPY for 2-15-2019

When i think about high probability setup this is what i think. According to Elliott wave theory we are in wave5 of a 5 wave move up . Within the 5th wave there are 5 internal waves. What we just witnessed as of Friday 2.3-0 am was a running flat correction that completed or as conventional analysts call it testing the lows. Once that happens what ensues is a trend move of 5 waves to the upside.