Grodge, wants to talk Elliot wave... which makes me happy....

The waves are made up of other waves.

Wave 1 is an Impulse wave in the direction of the Primary trend.... (so in this bear trend, down)

Wave 2 is a Correction in the oposite direction.

Wave 3 is always the largest, either the most in number or longest in time.

Wave 4 another correction

Wave 5 final small impulse.

on this chart I show wave one,

which ended at the end of November......

that wave is made up of 5 waves.....

With the VIX and the RSI hitting their Maximum value at the end of wave 3. and not at wave 5 or the Bottom.

The vix hit 31.09 on the 12th of november and not the 26th when we bottomed. Showing near term capitulation, and not a Crazy Reversal.

I expect a value in the vix of over 31.09 to show the end of wave 3. In fact I'd not be suprised to see 35-39... But that won't be wave 5 that will be wave 3... we get a bump and then Capitulation.... Near Term!!!

In a bear market, corrections go up, and are 3 wave moves

Labeled

• A impulse or upward move,
• B corrective move, and
• C final impulse move up.

But you get a spike in the RSI and the Vix.... Foolishly I don't track the Vix... I can't believe I stopped doing that.... it was completely stupid.... But the Vix and the RSI Should SPIKE Higher in Wave 3 than they do in wave One or Five. The move from the Short covering Rally... I called the end of wave 3 in this downturn..... But it Wasn't because the VIX didn't Spike, just the RSI.

What does all this tell me???.... The short covering rally last week was probably the end of wave 1, Meaning This downturn, is still wave 3. But the little spike should give us a larger Reflex Rally...

My original call was for a 2-3 day Rally... Larger than the wave 2 rally.... But 2 Legs Up one correction. wave.... This could go till wed....

I want to work up a short term chart.