by Avi Gilburt, ElliottWaveTrader.net
Thursday December 26th 2013
As the market continues to extend, it is still within a wave (3). And, yes, we have had many more extension than normally seen, as a wave (3) normally targets the 1.618 extension, and we are now approaching the 2.382 extension. Until the 1830ES level is broken to the downside, the market may attempt even further extensions in this wave (3), all the way to the 2.618 extension.
I have also now adjusted the wave (4) target with the assumption that the 2.382 extension will mark the top of wave (3), but, clearly, we still have no confirmation.
Ideally, I really like the 1813 level, which is the 1.618 extension, as a target for wave (4), since 33 points from that level is the 2.618 extension, and that is where waves (1) and (5) would be equal if wave (4) would bottom at that level. But, I am getting well ahead of myself, as we are still awaiting wave (4) to show itself.
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