Subscribers to our daily updates expected a sharp decline in wave C and the market has certainly not disappointed! A substantial portion (or maybe all) of the wave C decline is complete. It is now worth pointing out the similarity between the current Elliott Wave Flat pattern, and the one that unfolded in March 2012.
In March, the initial ABC unfolded as expected. After that the most likely possibility was a resumption of the bull market with an impulsive advance. However, the market failed to rally. Instead it put in a small, Triangular 'X' wave ('X' means AND in EW-speak), followed by a second ABC down to complete a Double Combination to 1262.
I am not saying that this is exactly what will happen this time as well. This time we may just get the one ABC. However the pattern has been eerily similar so far so readers should stay alert for the possibility of a deeper correction.
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