Wave 2 of C-Wave

With the lower lows we struck this morning, especially when considering the overnight action, it seems that we have 5 waves down off the highs.  So, yes, I am assuming that we are in a c-wave down, and the market will have to prove me wrong in that assessment.  The larger degree pattern is suggestive of lower levels to come, and I would rather err on the side of expecting it sooner rather than later, but you should understand that is the perspective I am taking.

Based upon the rally seen today, we have just about complete 3 waves off the lows.  Now, ideally, I wanted to see a deep wave 2, which tested the 2165-77SPX region one more time before we dropped.  In fact, a deep wave 2 would have better confluence with our targets for the c-wave of wave ii.   However, towards the end of the day, we now have the minimal number of waves almost completed to consider 3 waves in place for a minimal wave 2 expectation.

In fact, the 3 waves off the low would seem to target the 2161SPX region, wherein a=c, which overlaps with the .500 retracement of wave 1 down.  So, again, while I would “prefer” a deeper wave 2, the market does not always provide me what I prefer.

Our main perspective is still that lower lows will likely be seen, so our question now is only feeling out from where that decline will begin.

5minSPX
5minSPX
1turnchart
1turnchart
Avi Gilburt is founder of ElliottWaveTrader.net.