The Finishing Moves For This Week
After putting up my initial buckshot for the next month, some movement has come into picture. I have Minor wave 1 ended on September 30 at 1400 which had it last just over 31 trading hours. This is 3 trading days earlier than my last forecast. This could mean I am wrong now, was previously, am still wrong, or most of my original forecast has slipped left and the marks will occur sooner than originally projected. A three day slide now brings the market top to the day of or day prior to Election Day 2020. This is absolutely possible with the likely unknowns set to occur November 3. We could be holding our breath for an outcome longer than we might have expected.
I have forecasted Minor wave 2's movement which are set to find its bottom before the end of this week. Minor wave 2's for the index tend to retrace the length of wave 1 by 33-68%. A 40% retracement is closer to the mean and average while remaining conservative. This conservative estimate would have Minor wave 2 last around 12 hours. Another significant statistic is that wave 1 is around 1.84 times the length of wave 2 which equates to roughly 14.5 hours for this wave 2. Lastly, Minor wave 1 tends to make up 22% of the length of the larger wave (Intermediate wave 5) it resides inside. Likewise, wave 2 makes up around 9.5% of that larger wave. Based on wave 1's length and possible contribution to the larger wave, Intermediate wave 5 could last around 145 hours and wave 2 could be 13 of them (SIDENOTE: 145 hours ends on October 22). I am projecting Minor wave 2 to last around 13.4 hours.
The movement for Minor wave 2 seemed much less complex to locate. A fairly common wave 2 retracement is around 38% which is also near the common Fibonacci retracement of 38.2%. This could have wave 2 drop 69.96 points. Wave 1's movement in relation to the total movement of its larger Intermediate wave is around 45% while wave 2 is around 17%. This could mean Intermediate wave 5 gains around 409.13 points and Minor wave 2 only drops 69.55 (SIDENOTE: 409.13 points puts the top around 3618.58). Lastly, wave 1 tends to move 2.37 times wave 2 which could see a 77.68 point drop for Minor wave 2. I am forecasting a drop of roughly 70.56.
Based on the forecasts, I have further attempted to identify the movement of Minute waves A, B, and C. Wave A tends to make up 35.54% of the larger wave's movement while B makes up 28.13% and C is 37.24%. Wave A tends to move 73.86% of the overall move, while B reverses course for 44.60% and C is 67.83%. I have placed the A, B, and 2 (Minor wave C) roughly when and where the waves should change course. This is setting up for a truly great entry point to "buy the dip."
Minor wave 3 begins next week and could make for a few weeks of major gains. The catalyst? COVID stimulus is not dead yet and could find an agreement before Congressional recess this weekend or early next week.
I have forecasted Minor wave 2's movement which are set to find its bottom before the end of this week. Minor wave 2's for the index tend to retrace the length of wave 1 by 33-68%. A 40% retracement is closer to the mean and average while remaining conservative. This conservative estimate would have Minor wave 2 last around 12 hours. Another significant statistic is that wave 1 is around 1.84 times the length of wave 2 which equates to roughly 14.5 hours for this wave 2. Lastly, Minor wave 1 tends to make up 22% of the length of the larger wave (Intermediate wave 5) it resides inside. Likewise, wave 2 makes up around 9.5% of that larger wave. Based on wave 1's length and possible contribution to the larger wave, Intermediate wave 5 could last around 145 hours and wave 2 could be 13 of them (SIDENOTE: 145 hours ends on October 22). I am projecting Minor wave 2 to last around 13.4 hours.
The movement for Minor wave 2 seemed much less complex to locate. A fairly common wave 2 retracement is around 38% which is also near the common Fibonacci retracement of 38.2%. This could have wave 2 drop 69.96 points. Wave 1's movement in relation to the total movement of its larger Intermediate wave is around 45% while wave 2 is around 17%. This could mean Intermediate wave 5 gains around 409.13 points and Minor wave 2 only drops 69.55 (SIDENOTE: 409.13 points puts the top around 3618.58). Lastly, wave 1 tends to move 2.37 times wave 2 which could see a 77.68 point drop for Minor wave 2. I am forecasting a drop of roughly 70.56.
Based on the forecasts, I have further attempted to identify the movement of Minute waves A, B, and C. Wave A tends to make up 35.54% of the larger wave's movement while B makes up 28.13% and C is 37.24%. Wave A tends to move 73.86% of the overall move, while B reverses course for 44.60% and C is 67.83%. I have placed the A, B, and 2 (Minor wave C) roughly when and where the waves should change course. This is setting up for a truly great entry point to "buy the dip."
Minor wave 3 begins next week and could make for a few weeks of major gains. The catalyst? COVID stimulus is not dead yet and could find an agreement before Congressional recess this weekend or early next week.
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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