Happy new year to all my follower and readers. With 2014 behind us, ending with some selling, we can all wonder how 2015 will be.
So far, the market is following text-book script for a potential 5 waves up to complete green minor 1. Minute iii and iv may have completed, with the former doing a 276.4% extension on the NYA (and 261.8% extension on the SPX), while the latter wave retraced so far a little over 23.6% of the entire previous move up. This is rather typical for a 4th wave of the same degree.
Since there are still only 3 waves up, we could also be dealing with a larger intermediate ii wave, where the recent high was a b-wave, and the mid-December low an a-wave; which would mean in that case that price is now in a c-wave down to lower lows. However, that’s an alternate count.
The preferred count has the market making new highs, for minor 1, before embarking on a larger correction of 50-62% of the move from the December lows to new highs for green minor 2. Since this is still a bull market, the bulls get the benefit of the doubt until proven otherwise! So, yes 2015 will therefore be much of the same as 2014.