Complex 4th Wave

This 4th wave will likely become even more complex before we are done.  While another drop tomorrow can certainly complete this 4th wave, it just seems that it is possible for this to all be only an (a) wave of a much larger 4th wave pattern.

As for today, we saw the decline we expected from yesterday’s rally, and we have come down into a region which can represent two possibilities.  Either the market is going to continue down tomorrow to complete a larger c-wave down, or we are going to see another rally like yesterday, which will create a larger yellow b-wave flat.  And, if you ask me how will we know, well, I will simply say welcome to the world of 4th waves.

But, the one thing I will say is the a 5 wave decline into the target region will likely be a buying opportunity, with the only question being if the next rally is a larger (b) wave in a larger 4th wave structure, or if we are going to embark on a 5th wave rally over 1600.

Avi Gilburt is founder of ElliottWaveTrader.net.