* Below is a Market Forecast update from World Cycles Institute
Projections For Current Rally
In the past week, the ending diagonal started to become doubtful due to the wave structure. There was a wave just before the large triangle which ended up being a small ending diagonal (of the third wave of the larger third wave).
Based on re-labeling as a 5 wave move in ES wave (3), I’m still projecting a final top to our five hundred year set of Supercycle waves sometime in the early part of this year. I’ve given up on being specific, as these waves have been moving very slowly. Ultimately, Mr. Elliott’s waves will forecast the end and give us adequate warning of the turn.
There are no changes in the prognosis. The dismissal of the ending diagonal pattern simply means that wave 4 down will seek its own bottom and is not confined by the requirements of an ending diagonal. It is therefore likely to retrace 38% of the C wave at its own pace (to about 2202). This new count also aligns ES with the wave structure in the DOW, and it’s always a good thing when the structure is similar across the major indices. Having the DOW that out of sync with the SPX has been pointing to an issue with the SPX count.
Peter Temple’s complete update is located at World Cycles Institute.