using the Elliott Wave Principle , which allows us to identify the potential paths the market can take based on known patterns, which must adhere to specific price-based rules.
EDs comprise a 3-3-3-3-3 pattern and are, therefore, initially indistinguishable from a correction: a 3-3-3 pattern. Thus, it takes time to be confident that the SPX is in an ED. With that in mind, we expect the green W-a/1 and b/2 of the red W-iii/c to be complete and the green W-3/c to ideally SPX5950+/-25 to be underway. The latter may subdivide as shown in the one-degree lower grey W-a, -b, and—c. The Bears have been able to break price below the continuously raised warning level for the Bulls but have, so far, stalled at the grey, 2warning, level at the FED-Wednesday low of $5615, as that increases the odds that the market can go below the September 6 low at $5402.
However, it requires a break below the September 6 low, with a severe warning below $5490, to tell us that will be the case. From there, the black W-5 can start. However, this remains our alternative view, “insurance policy,” as the index is still trending higher.unless we are entirely mistaken, one way or another, we don’t see the FED’s rate decision crash the market