Elliott Wave Update ~ 1 June 2012

Yesterday the forecast for a wave (iii) of [v] to occur "very soon" came exactly this morning. Another heavy day of selling. 92% down volume ratio on the NYSE and a whopping 95% down on the NASDAQ.  Decliners versus advancers were 86% and 84% respectively.  Overall today can probably be considered a 90% down day when combining all of the above ratios.

Best count for the S&P500 might be the one below although I hesitate to call exactly when another significant bounce period will occur considering the terrible conditions of the underlying fundamentals (yes the entire world's financial system really is a Ponzi scheme) and the thought that if this is Primary wave [3] down, there should be a downward exertion that trumps that experienced in 2008.

Regardless, again the best count for now is that we have at least a 5 wave pattern down and that is indicative of a trend change.

A five wave move should "look" right from afar. Using the daily, this basic common-sense EW look passes the minimum test.

And yet another high pressure selling day can be seen.  

NOTE: Its not the wave degree that matters so much (they may be one degree too high) but its the form that matters.  

5 waves down pretty much confirmed in all indexes - less the Transports which are kinda impossible to count since their early Feb high anyways.

Now excuse me while I go read today's newest (June issue) EWI Financial Forecast bear pron.