by Avi Gilburt, ElliottWaveTrader.net
Tuesday August 20th 2013
As we have said time and again, we really want to see a 5 wave structure off the highs to confirm a sizeable change in trend. That being the case, we currently seem to be in wave iv of that 5 wave structure. The most likely count has us in the a-wave of that wave iv, which means we should see a b-wave and c-wave potentially into tomorrow, which sets up a wave v down later this week.
Assuming the market will give us 5 waves off the high into the end of the week, this would be setting up a larger degree wave (2) rally next week, and potentially taking us into September. This would likely set up a big wave (3) down, which, to many, will feel like a “crash,” as we can easily see over 100 points shaved off the market in a matter of 5-8 trading days.
So, while we have discussed this potential set up ad-nauseam, we are quite close to the market actually proving us with the set up for a major trade to the downside.
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