Don't count the Fed out just yet. They are good at blowing bubbles, especially with a major election near at hand. While many Fed members have backed down on immediate rate cuts, some say that the Fed has no choice but to lower rates to prevent a major liquidity crisis. With this in mind, our current move stemming from October 2023 might be an extended wave 1 with wave 2 in process, moving down to the bottom of the channel around 495. A wave 3 measured move of 1.618 could push prices to near 700. This would be near a 2.618 measured move of a larger Wave 3 that also began in October 2023.
While many are looking for a major Wave C correction that will take prices below the October 2022 low, not likely in an election year.
While many are looking for a major Wave C correction that will take prices below the October 2022 low, not likely in an election year.