The S&P 500 Chart is still Bullish, but in January it was Way Above the Green Line.
From subscriber Masao:
“Hi Above Green. Thank you for information.
I follow Wave 3 up idea (Click for CHART). However, if goes beyond the last low, I will loss cut all.
I only looking for your strong chart now for Wave 3.”
Yes Masao, Wave 2 down is normally about a 5/8 retracement of Wave 1 up, on lower Volume (but can be up to 100%).
If the Wave 2 down exceeds more than100% of Wave 1 up, then our Elliott Wave Count is probably wrong…
The only problem with the S&P Chart in January (see Chart above) was that it was over-bought (Way Above the Green Line). Investments are Bullish Above the Green Line.