Chart Update: What to watch to see if the favorite count that intermediate wave (3) is melting up to new highs prevails

On the SPX chart below, I show my favorite blue count and my alternative red count. The blue count is that intermediate waves (1) and (2) are already complete and now we are in minor wave 3 of intermediate wave (3). This count presumes a melt up for the markets through the end of the year. This is not a political blog, but we can draw conclusions about the Presidential election from the wave count. Back in 2016, a couple of months before the election when Trump was down 12 points in the polls, I noted that the wave count predicted his victory in November. It seemed impossible to most, but it played out as predicted. Similarly today, if my favorite count is correct, then Trump should be re-elected as the new bull market has entered a very bullish intermediate wave (3) of its first primary wave.

On the 60 min chart below, there is an inner red channel. Should this channel contain the SPX and should the SPX reverse after testing the upper channel line and then take out the lower channel line, then the red alternative count that intermediate wave (1) has just topped. The favorite blue count is that both intermediate waves (1) and (2) are complete and now we are in minor wave 3 of intermediate wave (3). According to this favorite count, we should see a continued melt up for the SPX into the election without a meaningful pullback. Keep an eye on the red channel, happy trading!

About alphahorn

I received an MBA from Columbia University’s Graduate School of Business in New York and am a Wall Street veteran. I’ve worked for a number of investment banks including Smith Barney and First Boston/C S First Boston in New York. Over the years, I have developed my own Proprietary Swing System and I combine that System with my own Elliott Wave Analysis to trade.
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