Elliott Wave Principle - Wave V is ending, correction incoming

Currently, we are at the end of the massive impulse wave (or near the end) from the March lows. This has been a spectacular move for the bulls, but its coming to an end. Wave iii has been quite tricky, as it was extremely extended and Wave iv was an extremely choppy correction and did not retrace that deep, which suggests that wave v will be relatively shallow compared to wave iii. The top to wave v should be complete (or if it goes up, expect it to top out around 3100).

Looking ahead, its clear we are in for a correction, but because this rally was an impulse wave, we know that it is NOT part of an ABC correction. Additionally, the fall to 2200 was also clearly an ABC correction, which leads us to the conclusion that the impulse wave has a high likelihood of being Wave 1 to start a new cycle. With that in mind, our target should be around the .618 fib to .786 for Wave 2 to retrace to (although it can retrace 100% of Wave 1). If this is the case, the drop from 3060/3100 should be a clear ABC correction, but we shall see how it unfolds.

Good luck out there!