Price Waves #5 - The Weekly Chart From The 2011 Low

Looking at the cash S&P500 from the “x” wave low of October 2011 from an objective wave view:

Starting from the October 2011 low of 1074.77 (which was a 57 period low) which was identified as the last low on the next higher time frame (Monthly chart):

1. H greater than12H: 1/13/2012.

2. L less than 7L: 05/11/2012. This means that W.1 up ended at the 1422.38 high of 04/05/2012.

3. H greater than 20H: 08/24/2012. This means that W.2 down ended at the 1266.74 low of 06/08/2012.

4. L less than 12L: 11/09/2012. This means that W.3 up ended at the 1474.51 high of 9/14/2012.

5. H greater than 33H: 01/18/2013. This means that W.4 down ended at the 1343.35 low of 11/16/2012.

6. L less than 12L : Not yet recorded. This means that W.5 up is still underway.

The D-Wave pattern is exactly the same as the one on the monthly chart examined in the last post of this series. To transform from a D-Wave to Elliott Wave count we once again need to change to an A-B-C-X count. Once again, in order to keep the D-wave synched with the Elliott wave, the D-wave 5 on the weekly chart (from the November 2012 low) must; in Elliott terms, be an A-B-C pattern. This A-B-C will be the last in a Triple Three formation from the 2009 low and will compose the “D” wave of an Expanding Triangle that began at the year 2000 high.

We’ll explore this idea on the daily chart in the next posting.