Indeks S&P 500Short
The bottom is in sight, well sort of...
Another wave completed (Intermediate 2) gives us a better idea of where Intermediate wave 3, Primary wave 3 and Cycle wave 2 will end. I now have us in Sub-Millennial wave 1 (began June 1877), Grand SuperCycle wave 5 (began March 6, 2009), SuperCycle wave 3 (began March 23, 2020), Cycle wave 2 (began January 4, 2022), Primary wave C (began March 29, 2022), Intermediate wave 3 (began April 21, 2022) and Minor wave 1. The shorthand for this wave is 1532C31 which is based on wave letters and numbers combined.
We are either in Minor wave 1 or a sub-wave thereof (Minute wave 1 is the other likely wave). The first thing I have tried to complete is identifying the current sub-wave structure, but the past two days have almost traded in a straight diagonal movement downward. This below chart tries to identify impulse wave characteristics.
https://www.tradingview.com/x/fXILdF7j/
My indicators at the bottom attempt to find the signals of a wave 3 and also look for the best agreement in the indicators. I have placed preliminary wave numerals on the chart as well, but these will most likely change as the wave plays out. The most agreement for wave 3 is shortly after noon Eastern time from Friday April 22. The most significant non-diagonal movement occurred at the end of the day on April 22. This could be the final drop in Minute wave 1 and possibly Minute wave 2 action culminating in the beginning of Minute wave 3. The sell-off on Friday does make a Monday rally possible, but it will not last long if it occurs.
WHERE WILL INTERMEDIATE WAVE 3 END?
The models have Intermediate wave 3 lasting 6, 7, 9, 12, 14, 15, 16, 17, or 19 trading days based on waves ending in 2C3. Model agreement above 21 is weak while the strongest agreement is on 7 trading days followed by 19 and then 16. Seven trading days would put the low on May 2. The Fed meets May 3-4 and will likely raise rates 0.75% or higher. The bottom may occur once their decision is public the final day. May the 4th be with you in finding the bottom. A method for finding the bottom include wave movement extensions from the respective wave 1 movement. Intermediate wave 1 began at 4637.30 and dropped 255.96. Typical Intermediate waves ending in 2C3 move 117.97 – 143.91% of what wave 1 moved. 143.91% would put the bottom at 4268.95. Friday’s low was 4267.62. The problem is that we are already at these levels and there is clearly more time in Intermediate wave 3. There are some historical outliers at 420% and 950%. A Fibonacci extension at 161.8% (4223.16) will occur too quickly as well. These outliers and our current drop hint that this method will not help.
Scaling back and studying waves ending in C3 alter duration slightly. The most agreement is on 12 trading days followed by 7 and 19 days. Using the wave 1 movement extension method also provides more reasonable price targets which is 263 - 363% of wave 1’s movement. This would put the end of Intermediate 3 between 3706.73 – 3964.07. There is strong agreement between 3947 - 3964. This indicates we still have at least 300 plus points to drop over the next week or two.
Intermediate wave 3 will ultimately be composed of 5 Minor waves. As each wave completes, I will continue to provide updates as to potential target bottoms and timeframes.
WHERE WILL CYCLE WAVE 2 AND PRIMARY WAVE C END?
CYCLE WAVE 1 DATA SAYS…
Cycle wave 2 which began in January could last 45, 47, 49, 58, 68, 75, 78, 81, 85, 90, 95, 101, 104, 110, 111, 118, 125, or 150 trading days according to my models. Strongest model agreement is on 90 days. Wave 1’s length is usually 9.259 to 10.11 times larger than wave 2. This would have placed Cycle wave 2’s length around 45 days. The common smaller ratio for 1 to 2’s length is 2.529 to 4.333. This could put the length between 104-178 trading days. Friday April 22 was day 75 and we are clearly not done yet. Most C waves drop below the bottom of their wave A. Since Primary wave A bottomed at 4114.65, Primary wave C should drop to this level at a minimum. At the quickest we would be 2-3 days from this point, however, we are still in Minor wave 1 down and require a Minor wave 2 moving up. This means we are reasonably a week or two at the fastest from ending Cycle 2. My models are projecting even longer. All this to say, Cycle wave 2 will likely be longer than 90 trading days and likely over 100 in length.
Overall projected price targets see the most agreement with a bottom around 3850, however the range of potential bottoms are strong between 3571 and 4075. Wave 2 tends to retrace the movement of wave 1 between 19.89% - 76.95%, with most occurring around 24 - 46%. With Cycle wave 1 gaining 2626.76, a retracement of these magnitudes would have the following bottoms for Cycle wave 2:
19.89% puts the bottom at 4296.157
25% = 4161.93
30% = 4030.592
35% = 3899.254
40% = 3767.92
45% = 3636.578
Wave 1’s movement in relation to wave 2 is typically 1.299 to 5.02 times larger. On average wave 1 is 3.138 times larger than wave 2 which could see a bottom around 3981.53.
PRIMARY WAVE A DATA SAYS…
Primary wave A’s length typically accounts for 19 – 38% of the overall length of the wave it resides inside. This could make Cycle wave 2 between 91 to 176 days long. A strong reoccurring pocket in this dataset could make it 91 to 118 days long. Primary wave A’s move commonly accounts for 70.81 – 79% of the larger wave’s movement. This could see Cycle wave 2 ending between 3824.45 – 3927.40.
PRIMARY WAVE B DATA SAYS…
Primary wave B’s length typically accounts for 12 – 50% of the overall length of the wave it resides inside. This could make Cycle wave 2 between 46 to 178 days long. Two strong reoccurring pockets in this dataset could make it 106 to 108 days long or 168 to 178 days long. Primary wave B’s move commonly accounts for 32.91 – 61.2% of the larger wave’s movement. This could see Cycle wave 2 ending between 3230.50 – 3964.62. A strong reoccurring pocket is 3230.50 to 3283.22. The strength of this pocket cannot be ignored; however, it appears to be an outlier next to all of the other potential bottoms throughout this analysis. It would also require Intermediate wave 3 and wave 5 to drop many hundreds of points beyond typical behavior to achieve it.
INTERMEDIATE WAVE 1 DATA SAYS…
Intermediate wave 1 tends to contribute around 27% to the length of the larger wave it resides inside. This means Primary wave C could last 37 days. This aligns with Cycle wave 2 lasting 95 days. On a targeted scale, Intermediate waves ending in C1 typically account for 5 – 41% of the larger wave in which they reside. This would have Primary wave C lasting between 24 and 190 days. The median length of Primary wave C could last 33 (making Cycle wave 2 - 91) days while the average would be 41 (Cycle wave 2 would be 99).
INTERMEDIATE WAVE 2 DATA SAYS…
Intermediate wave 2 tends to contribute around 10% to the length of the larger wave. This mean Primary wave C could last 55 days and end by mid-June. On a targeted scale, Intermediate waves ending in C2 typically account for 3 – 12% of the larger wave in which they reside. This would have Primary wave C lasting between 50 and 188 days. The median could be 72 days while the average is 55. These results appear much higher than other data and is among the least reliable for this analysis. Similarly considered on the movement side. The bottom for Cycle wave 2 could be between 1831 - 4457 with an average around 4207 and a stronger data pocket between 3911-4227. Based on the other information throughout the modeling and this analysis, the low end is most likely in this case.
CONCLUSION
The likely future is contained in this analysis. Intermediate wave 3 will finish first and my target based on this data somewhere around May 4 and below 3968. Wave 4 will briefly move up before we finalize the bear market near the end of May. My current expectations is the low will be no lower than 3600, but we shall see once Intermediate waves 3 and 4 end.
I hope you like this and feel free to follow me for more.
We are either in Minor wave 1 or a sub-wave thereof (Minute wave 1 is the other likely wave). The first thing I have tried to complete is identifying the current sub-wave structure, but the past two days have almost traded in a straight diagonal movement downward. This below chart tries to identify impulse wave characteristics.
https://www.tradingview.com/x/fXILdF7j/
My indicators at the bottom attempt to find the signals of a wave 3 and also look for the best agreement in the indicators. I have placed preliminary wave numerals on the chart as well, but these will most likely change as the wave plays out. The most agreement for wave 3 is shortly after noon Eastern time from Friday April 22. The most significant non-diagonal movement occurred at the end of the day on April 22. This could be the final drop in Minute wave 1 and possibly Minute wave 2 action culminating in the beginning of Minute wave 3. The sell-off on Friday does make a Monday rally possible, but it will not last long if it occurs.
WHERE WILL INTERMEDIATE WAVE 3 END?
The models have Intermediate wave 3 lasting 6, 7, 9, 12, 14, 15, 16, 17, or 19 trading days based on waves ending in 2C3. Model agreement above 21 is weak while the strongest agreement is on 7 trading days followed by 19 and then 16. Seven trading days would put the low on May 2. The Fed meets May 3-4 and will likely raise rates 0.75% or higher. The bottom may occur once their decision is public the final day. May the 4th be with you in finding the bottom. A method for finding the bottom include wave movement extensions from the respective wave 1 movement. Intermediate wave 1 began at 4637.30 and dropped 255.96. Typical Intermediate waves ending in 2C3 move 117.97 – 143.91% of what wave 1 moved. 143.91% would put the bottom at 4268.95. Friday’s low was 4267.62. The problem is that we are already at these levels and there is clearly more time in Intermediate wave 3. There are some historical outliers at 420% and 950%. A Fibonacci extension at 161.8% (4223.16) will occur too quickly as well. These outliers and our current drop hint that this method will not help.
Scaling back and studying waves ending in C3 alter duration slightly. The most agreement is on 12 trading days followed by 7 and 19 days. Using the wave 1 movement extension method also provides more reasonable price targets which is 263 - 363% of wave 1’s movement. This would put the end of Intermediate 3 between 3706.73 – 3964.07. There is strong agreement between 3947 - 3964. This indicates we still have at least 300 plus points to drop over the next week or two.
Intermediate wave 3 will ultimately be composed of 5 Minor waves. As each wave completes, I will continue to provide updates as to potential target bottoms and timeframes.
WHERE WILL CYCLE WAVE 2 AND PRIMARY WAVE C END?
CYCLE WAVE 1 DATA SAYS…
Cycle wave 2 which began in January could last 45, 47, 49, 58, 68, 75, 78, 81, 85, 90, 95, 101, 104, 110, 111, 118, 125, or 150 trading days according to my models. Strongest model agreement is on 90 days. Wave 1’s length is usually 9.259 to 10.11 times larger than wave 2. This would have placed Cycle wave 2’s length around 45 days. The common smaller ratio for 1 to 2’s length is 2.529 to 4.333. This could put the length between 104-178 trading days. Friday April 22 was day 75 and we are clearly not done yet. Most C waves drop below the bottom of their wave A. Since Primary wave A bottomed at 4114.65, Primary wave C should drop to this level at a minimum. At the quickest we would be 2-3 days from this point, however, we are still in Minor wave 1 down and require a Minor wave 2 moving up. This means we are reasonably a week or two at the fastest from ending Cycle 2. My models are projecting even longer. All this to say, Cycle wave 2 will likely be longer than 90 trading days and likely over 100 in length.
Overall projected price targets see the most agreement with a bottom around 3850, however the range of potential bottoms are strong between 3571 and 4075. Wave 2 tends to retrace the movement of wave 1 between 19.89% - 76.95%, with most occurring around 24 - 46%. With Cycle wave 1 gaining 2626.76, a retracement of these magnitudes would have the following bottoms for Cycle wave 2:
19.89% puts the bottom at 4296.157
25% = 4161.93
30% = 4030.592
35% = 3899.254
40% = 3767.92
45% = 3636.578
Wave 1’s movement in relation to wave 2 is typically 1.299 to 5.02 times larger. On average wave 1 is 3.138 times larger than wave 2 which could see a bottom around 3981.53.
PRIMARY WAVE A DATA SAYS…
Primary wave A’s length typically accounts for 19 – 38% of the overall length of the wave it resides inside. This could make Cycle wave 2 between 91 to 176 days long. A strong reoccurring pocket in this dataset could make it 91 to 118 days long. Primary wave A’s move commonly accounts for 70.81 – 79% of the larger wave’s movement. This could see Cycle wave 2 ending between 3824.45 – 3927.40.
PRIMARY WAVE B DATA SAYS…
Primary wave B’s length typically accounts for 12 – 50% of the overall length of the wave it resides inside. This could make Cycle wave 2 between 46 to 178 days long. Two strong reoccurring pockets in this dataset could make it 106 to 108 days long or 168 to 178 days long. Primary wave B’s move commonly accounts for 32.91 – 61.2% of the larger wave’s movement. This could see Cycle wave 2 ending between 3230.50 – 3964.62. A strong reoccurring pocket is 3230.50 to 3283.22. The strength of this pocket cannot be ignored; however, it appears to be an outlier next to all of the other potential bottoms throughout this analysis. It would also require Intermediate wave 3 and wave 5 to drop many hundreds of points beyond typical behavior to achieve it.
INTERMEDIATE WAVE 1 DATA SAYS…
Intermediate wave 1 tends to contribute around 27% to the length of the larger wave it resides inside. This means Primary wave C could last 37 days. This aligns with Cycle wave 2 lasting 95 days. On a targeted scale, Intermediate waves ending in C1 typically account for 5 – 41% of the larger wave in which they reside. This would have Primary wave C lasting between 24 and 190 days. The median length of Primary wave C could last 33 (making Cycle wave 2 - 91) days while the average would be 41 (Cycle wave 2 would be 99).
INTERMEDIATE WAVE 2 DATA SAYS…
Intermediate wave 2 tends to contribute around 10% to the length of the larger wave. This mean Primary wave C could last 55 days and end by mid-June. On a targeted scale, Intermediate waves ending in C2 typically account for 3 – 12% of the larger wave in which they reside. This would have Primary wave C lasting between 50 and 188 days. The median could be 72 days while the average is 55. These results appear much higher than other data and is among the least reliable for this analysis. Similarly considered on the movement side. The bottom for Cycle wave 2 could be between 1831 - 4457 with an average around 4207 and a stronger data pocket between 3911-4227. Based on the other information throughout the modeling and this analysis, the low end is most likely in this case.
CONCLUSION
The likely future is contained in this analysis. Intermediate wave 3 will finish first and my target based on this data somewhere around May 4 and below 3968. Wave 4 will briefly move up before we finalize the bear market near the end of May. My current expectations is the low will be no lower than 3600, but we shall see once Intermediate waves 3 and 4 end.
I hope you like this and feel free to follow me for more.
All forecasts are based on analysis of past behavior. Prior movements are not always indicative of future movement. Develop the theory, test the theory. Do your own research. Nothing in this analysis constitutes advice. YouTube For More. Good luck!!
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