Elliot W : Response to a listee

[Rajesh <demon@xxxxxxxxxxxxxxxx>]

Feedback from a Listee :
I'm still of the opinion  that the rally up is a B wave (in an irregular
flat for the DJI, and a
normal zigzag for the broader indices) and that the next major move will
be
a C wave down.

Reply Extracts Mentorspeak "

 If you are of the opinion that the current movement of the DJIA
upwards from 7400 or 7467 (whichever you consider to be the bottom)
is a B-wave, I can see 2 possibilities as to how you have arrived at
this conclusion.

1. You are taking 9367 as the market high.  You are then taking the
   fall from 9367 to 7400 or 7467 as an A-wave and the rise from
   this bottom as a B-wave.  The subsequent C-wave downwards will
   complete an irregular flat.  In an irregular flat, both the A and
   the B waves are corrective.  Can you please put a corrective
   wave count to the A-wave?  At the current level of the DJIA, I
   have no problem in putting a corrective count to the upward
   movement of the DJIA from 7467 but I am unable to arrive at a
   satisfactory corrective count to the fall from 9367 to 7400 or
   7467.

2. You are taking the 8200 level (approx) as the market high and the
   subsequent market action which terminated at 7467 as an a-b-c
   irregular failure.  You are then labelling this a-b-c irregular
   failure as an A-wave of one larger degree.  You are then taking
   the subsequent rise as a B-wave.  The problem here is that an
   irregular failure as an A-wave is a rarity though not impossible.
   The market has no logic.  It is illogical.  However, it is
   imperative THAT OUR ANALYSIS HAS LOGIC.  We are trying to use
   Wave Analysis as a tool to assist us in putting some order into
   chaotic market behaviour.  An irregular failure as a correction in
   a rising market signifies considerable market strength.  If the
   rise from 7467 is indeed corrective,  then it would be more
   appropriate to label it as a X-wave rather than a B-wave.  If it
   is a corrective X-wave, then the market should subsequently form
   a second a-b-c flat pattern completing a double-three
   (a-b-c-x-a-b-c) corrective pattern or possibly a running double-
   three pattern.  In either case, subsequent market action after
   the completion of this pattern will be explosive.

I have an open mind as to whether the rise from 7467 is corrective or
impulsive.  So far, the market has not violated any rules in order
to negate an impulse wave count.  The moment it does, then by default
the upward movement of the market is corrective in nature.

I look forward to receiving your comments, especially with regard to
a corrective wave count for the fall from 9367 to 7400 or 7467.

Regards,