Above are three identical charts, each showing a different Elliot Wave interpretation, "count."
The first count is impossible because, according to the rigid rules of Elliott Wave, wave-4 cannot overlap wave-1. The count is deceptive because for anyone bullish, the corrective waves 2 and 4 are pretty similar in nature.
Given that the first chart can be ruled out, we are left with two possibilities. The most likely is chart two, in which the bull market from 2009 to 2011 was a counter trend, a-b-c, that is part of a larger bear market than began in 2007.
The only valid count that is bullish is the third chart, in which this current correction, not being a wave-4, can overlap wave-1. This is possible by classifying this correction as sub-wave-ii of wave-3 (of a five wave advance.)
I don't necessarily believe in Elliott Wave, but this post is my best assessment--which I am very confidence is accurate--of the market according to the theory's principles.
