Perhaps $XLF Offers Us a Vital Clue

Three charts for you to look at.

The move down on $SPY from the top is a complete mess to try to count with any strong degree of certainty. We can certainly take any number of guesses, but it’s too hard to say for sure, I think, one way or another. And getting it right sort of matters.

If it’s a 5-wave move down like this (and every single bear out there right now says it is), then we would expect a 3-wave move back up, followed by another devastating 5-wave move down. It would mean that the correction is not over.

SPY

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