Page 3 | Marketcorrection — Trading Ideas on TradingView

S&P Possible Major Correction to $0 (Seriously)Elliot wave analysis showing the market is currently at the top. With the current state of affairs in the world, and the fact that wave 2 can retrace 100%, this leaves open a very good possibility of a total market collapse that still conforms to Elliott rules. On a large scale, we are entering a wave 2 correction. The standard correction can be expected to last 10 years like the previous cycles. However, if the correction ends up being a combination, and the world has continued on its current path, panic will quickly set in and all the fun will be over by 2033.

Did You Really Think VIX Will Remain Under 20 For Long?As we continue the declines from the top (2490.91 on September 21, 2018), we are ready to test and re-take the Christmas Eve lows. This market is the in the earliest stages of the meltdown. TV pundits keep telling you to "buy this dip," but don't be caught off guard. Based on the moves in our current intermediate wave down, we will see within a few days if wave 4 indeed ended on January 10, 2019. If that high is not retaken, I expect the market to continue down to the polygons on the chart. The green box will be the most likely bottom for the end of Primary wave 3. Don't fool yourself, this is only the half-way point of Cycle Wave 1 (there will be 5 of them) in Supercycle wave A which will be an ABC corrective wave. History says this is only the beginning. If the rest of the world is starting to believe a global recession is in the offing, just wait until the realize it is here. Then it will be too late. I have calculated 356 data points of Grand Supercycle Wave 1 (which just finished in September) that dated back to 1932. We are just entering Grand Supercycle Wave 2 which is a correction that has not been seen before. Hopefully I am wrong and this is a bump in the road as the pundits believe, but what if I am right (like I have been)?

Danger In The Equities Market, Massive Sell Off May Occur!Hey Traders, there has been some significant selling in the equities market over the past week leaving the Dow down 7.5% in 6 days! On the chart above, I have labeled a few Major structure levels. For those of you who have gone through my How to read structure tutorials- we can clearly see that price has been trading within a range for a long time. That range was recently tested by the new higher high labeled on the chart above, and the test failed propelling price in the opposite direction. Since then, price has produced a weekly lower high followed by a break and close below the previous low. This leaves us with a weekly lower high, lower low situation. The next probable move would be a small rebound creating another lower high- If another lower high is created on the weekly chart, fear will surely pick up amongst Investors and there is a good possibility that we may witness a Major sell off from that point. This is purely structure analysis and nothing is confirmed yet however the recent price action shows all the characteristics of a market that is potentially reversing. If the market is to continue this way, and we receive confirmation of a reversal, I do not see how the markets will recover without a significant correction of at least 20%. For many years, people have been calling for a market crash, economic collapse, and so on however my analysis has always pointed towards trouble in the markets at the end of 2018 through 2021. If my analysis is correct, a market correction would occur throughout 2019, 2020, and possibly 2021. In this scenario I do not see the markets beginning to recover from these losses until at least 2021-2022. This analysis is based off of many different fundamentals, regarding interest rates, economic data, short term/long term cycles etc. Fundamentals only provide an outlook and are better used to determine a relative time frame for certain events, Technical Analysis however, can be used to help narrow that time frame. Judging by the current technicals, it appears as though we may be entering/approaching an Equities bear market. As for economics, I am not going to comment on that now in this post however I will touch on that subject in the near future. For now I am interested in seeing how price action unfolds over the next month or so as it will be revealing! Lets see if we can get a rebound on Monday up into the 23,000-23,500 level before a further sell off. If we do not get a rebound, then we may be looking at a famous "Black Monday".. The last scenario that could unfold is- price makes its way back up into the trading range (between the major previous high and low) and trade within that range for awhile. In my opinion the first scenario of a rebound and then sell off is the most likely to occur, while the last scenario is the most unlikely to occur. I hope this post is of value to you. If you would like me to post more on this subject please let me know in the comments section below. Please leave your feedback in the comments as well and give this post a thumbs up if you agree and/or it was helpful to you.

What would a crash look like?The orange lines are all the same, they show the angle of decent in our recent crashes. The yellow lines are all the same, they show the angle of descent of freefalls during those crashes. Will the market correction (aka "crash") drop us back to the previous set of trend lines, around the $200 - $220 range? Would you say I'm crazy if I told you I wouldn't be surprised if it fell all the way to $40? The 2000 dot-com bubble caused the DJIA index to drop 35%. The 2000 sub-prime crisis caused the DJIA index to drop 55%. How much would it drop this time? 65% ?? 75% ?? 85% ?? I extended out the 'crash angle of decent' to see where that'd take us... 2023. WOW!! What if we look at it another way? Each crash took us close to the $80 mark in less than a year, before setting a new low sometime after. I laid out an alternative course with many freefalls landing us around the $80 point a year from the max peak. The market is influenced by the traders. Traders are influenced by patterns, therefore the market exhibits patterns. Will this crash pattern repeat itself? I guess we'll just have to wait and see.