$SPY Daily Bearish count for the near term

Click to enlarge and see the counts

A bearish Elliot wave count for the near term on the $SPY.  SPY for those that don’t know is a commonly traded ETF that follows the S&P500.  I like to use it as an indicator of market direction better than the indexes themselves because it reveals more about trader’s sentiments.  It’s also useful to observe the markets after hours.

The c wave is known to be one of the most statistically significant.  Some traders center their technique around c wave.  Elliot wave theory of very interesting, and I will post more about it in the future.  If you don’t know about it I suggest you Google it and learn.

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2 Responses to $SPY Daily Bearish count for the near term

  1. Antoine says:

    If I get it right, Elliot wave theory is the primitive ancestor of the more modern “Spectral Analysis” which I don’t believe in at all ^^
    Don’t know if you know about spectral analysis or wavlets analysis. It might interest you if you into Elliot waves. But it might need some scripting skill cause I don’t think that many platform include this.

    • applenickel says:

      Elliot wave principle was founded by Ralph Nelson Elliott during the great depression stock crash it is based on the rhythms of human psychology – panic buying and selling which dominates the markets (especially today). What you are mentioning sounds like average oscillator indicators such as stochastic and MACD indicators. These latter indicate oversold and overbought conditions while Elliot wave is used to determine price targets and trend maturity. It’s important to remember that these are secondary indicators and are just used to confirm a trade and help with risk management, they are not used to initiate positions.

      “Elliott said that “because man is subject to rhythmical procedure, calculations having to do with his activities can be projected far into the future with a justification and certainty heretofore unattainable.”

      Check him out on Wikipedia, it’s very interesting.

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