After Wave Three Come Waves Four and Five
As a reminder, an ED’s waves (i–ii–iii–iv–v) comprise three waves: 3–3–3–3–3 = abc–abc–abc–abc–abc. Besides, W-iii typically targets the 123.60% extension of W-i, measured from W-ii. The W-iv then tends to correct back to the 61.80% extension, after which the last W-v targets the 161.80% extension. We were looking at W-iii to reach at least $6060 in this case. See Figure 1 above.
True to the ED’s path, the index peaked at $6099 on December 6. That’s only 0.6% off the ideal target, showing that the EWP is an amazingly accurate tool for forecasting the financial markets. This greatly helps our premium members stay on the right side of the trade and gives them precise and prudent trade-trigger levels.
Thus, with yesterday’s -3% day, the red W-iv “correction of around 5-7%” we anticipated announced itself and should subdivide, as shown, over the next few days, to the ideal target zone of $5735-5810. Contingent on the index holding above at least $5670, and especially $5400, we must expect the ED’s path we have been tracking for weeks to unfold. W-iv is underway and should bottom out around $5735-5810 over the coming days before W-v can reach at least $6280.