Since it looks like we're entering the final movements on intermediate wave (2), I wanted to take a look and see where we might expect this wave to terminate so we can prepare for intermediate wave (3).
Typically the second wave is a deeper retracement so I'm looking for a 61.8% pullback from the orthodox top of wave (1). That would take us to roughly $2846. This level was resistance for the market in June and July. It also appears that the 233 day EMA (red line) will likely meet prices near that level as well adding further support to this case.
Looking at EW extensions of subminuette wave iii (based on estimates of where iv will end), if wave v were to equal wave iii, that would take it to $3168. If wave v were to equal wave i, that would take it to $3367 which would be 61.8% of wave iii. In both of these cases, wave v would be truncated as it wouldn't reach the end of minuette wave (iii).
Given that neither wave i nor wave iii extended, I have a hunch that we may see an extension in wave v which could take us down to the $2846 level. That type of sharp move to the downside would seem to be a fitting ending to this correction.
In any event, we'll just have to watch and see what plays out. Stay tuned for updates!
If you have any thoughts or questions about this wave count or elliott wave in general, please post them in the comments.
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I am not a financial advisor. Be sure to do your own research.