The closest thing I can think of for a fractal
of the current market condition is the late 2016 correction prior to the elections. If you are really creative you can count 5 waves down in that decline too starting from Aug 2016 high. The current 5 wave decline is seen much more clear in the the RUT and NYA
. In the SPX
the market breaks EW rule of wave 2 retraces all of wave 1. I believe this is because of the overwhelming strength of tech of which SPX
is a overweight in. Again for best count look at RUT, NYA
or even some foreign markets. You will see a much more clear 5 wave decline starting from Jan of this year.
Now, because I think we will go down in 5 waves to complete the 5th wave. the 1st wave will drop
to support level
of 2700 area, then bounce then drop
in a 3rd wave etc. In the SPX
this entire structure will look like a double zigzag
starting from Feb highs.
THere is no guarantee this is what will occur, but based on previous fractal
in 2016 this is likely. Essentially the 5th wave becomes extended in time and takes the longest to occur with clear subwaves.