Trying To Complete 5 Waves Down

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.

 Elliott Wave Chart