The market dropped
unexpectedly today, or did it? Here at TheMarketTrendForecast we review
Elliott Wave and Fibonacci patterns to identify potential tops and bottoms in
advance. Our subscribers are forewarned of both opportunity and danger when
we read the patterns correctly. Below for example is a chart we sent out to
our subscribers on August 4th, a full 7 days prior to today's drastic
decline:
We were calling for a top
around 1130 on the SP 500 for the past few weeks as a "Bearish
Wedge" pattern was in the process of completing. I felt this was the
final stage in a multi-week 3-3-5 Elliott Pattern that would terminate with a
sudden drop out of the wedge. These tend to come out of left field, and at
major pivots bulls and bears are normally both caught off guard or flat
footed at best.
However, the market does not
move in random fashion as many people think. As we espouse here at TMTF, the
market moves in reliable "herding patterns" exhibited by the
participants in the market itself. People tend to get overly optimistic at
tops and overly pessimistic at bottoms. These patterns are oft identified at
TMTF as Fibonacci re-tracements or pivots. In addition, we overlay Elliott
Wave patterns whether corrective or impulsive to help determine probabilities
and the next likely outcome.
More often than not, we are
ahead of our peers in our Elliott Wave forecasts and our counts tend to be
more accurate than most. This is because I use a big picture view, and I
don't rely entirely on just the wave pattern itself. We add a few ingredients
to our market forecasting soup and this allows us to be consistently ahead of
the crowd with our predictions. Are we bragging a little bit? You bet we are,
and the reason we launched TMTF was to help educate investors on the value of
Elliott Wave theory and thinking outside the box when looking at the markets.
It's time to turn off CNBC and tune out the noise, and at TMTF we try to tune
out all the noise, turn down the volume, and provide some straightforward
probabilities and forecasts for our readers.
Perhaps you should join us,
and if your not ready, please review our free occasional reports by going to www.MarketTrendForecast.com
and signing up today!
