Maybe I am foolish. Maybe I don't know what I am talking about. But, I am still seeing the potential for the bulls to pull a rabbit out of a hat. Yet, their opportunity is narrowing.important resistance we outlined over the last few weeks. In fact, the overnight futures action came right up to that line, and turned down. And, then we broke down below the 4280SPX upper support region I highlighted last weekend.
But, I will also fervently note that those that have taken the time to learn what we want to teach have truly changed their lives when it comes to investing in the stock market. As one member just wrote to me two days ago: Let's start with the bullish structure. A corrective pullback in Elliott Wave analysis takes shape as an a-b-c structure, wherein the a-wave is most often a 3-wave structure and the c-wave is most often a 5-wave structure.
Let's first discuss the larger degree bearish scenario in a bit more depth. In looking at the larger picture, the bearish perspective would view the initial decline from the 2021 high to the 3500SPX region that was completed in October of 2022 as an a-wave, the rally to the 4607SPX region was a b-wave, and that we have now begun a c-wave pointing us down to the 2900-3300SPX region. Now, as I mentioned above, a c-wave takes shape as a 5-wave structure.
However, should the market see a sustained break of the 4165SPX region, and we continue down to the 4060-4100SPX region, then I have no choice but to change my primary perspective and view this decline as wave 1 of the 5-wave c-wave pointing us down to the 2900-3300SPX region as we look towards 2024.
I want to now discuss why we always maintain an alternative perspective for the market. Most people approach market analysis from the perspective of"tell me what the market is going to do right now." Well, I think anyone who has experience in the market knows that this is an impossibility. The market is a non-linear environment, therefore, we approach the market with a non-linear perspective.