Perfect SPY Elliott Wave setup

by AvailableLight3

SPY just completed a textbook perfect Elliott Wave impulse and is starting a nice looking correction as well. Yes, this is chart crayon drawing and I usually don’t pay attention to this stuff, but this market is so insane right now that I actually think this is going to work.

EDIT: Adding text of a comment I made to explain a bit more since this is actually legit DD and not a joke.

The thing is normally this stuff is bullshit, but it tends to work in super irrational markets. A lot of crypto traders use EWT and it can actually work in those markets. Right now we are in a situation where the Fed’s QE has practically guaranteed that the market has liquidity and credit, which is what drives markets. We won’t see a massive drop through the floor while liquidity is available. That happens when WAY more people want to sell than buy and so sellers are willing to outcompete each other to execute a trade.

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Right now, the market is purely a prediction market detached from fundamentals and with a way more significant than usual retail influence. Retail investors are piling in without knowing what the hell they are doing (AKA MANY OF YOU) and adding to the liquidity but also adding volatility.

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But, as soon as we see a correction begin these “investors” will get spooked and we will see a steep drop, followed by a buy back in because STOCKS ONLY GO UP and repeat. This is basically textbook Elliott Wave behavior, which ultimately what the theory is about — predicting emotionally driven trading behavior detached from fundamentals.

 

Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.