Overall Wave Structure (2016–2025):
Wave 1 (or Sub-Wave Extension, 2016–2018): From ~4,266 (Feb 2016 trough) to ~8,109 (Sep 2018 peak). This is often labelled as an impulsive advance, subdivided into five smaller waves, driven by post-financial crisis recovery and tech innovation.
Wave 2 (Correction, Late 2018): A sharp 3-wave (A-B-C) zigzag down to ~6,190, retracing about 38.2% of Wave 1 (Fibonacci level). This aligns with classic Elliott rules for wave 2 corrections being deep but not exceeding the start of wave 1.
Wave 3 (Extended Rally, 2019–2021): The strongest impulse, from ~6,190 to ~16,057 (Nov 2021 peak). Subdivided into five sub-waves, with extensions in sub-wave iii, reflecting the pandemic-era tech surge.
Wave 4 (Major Correction, 2022): A complex 3-wave decline (A-B-C) to ~10,213 (Oct 2022 trough), retracing ~38.2%–50% of Wave 3. Sources describe it as a "setup for higher highs," not the end of the bull cycle.
Wave 5 (Ongoing Advance, 2023–2025): From ~10,213 to current, but really near the peak of wave ((v)) 5(3), with prospect of a deep corrective. Character of the end of wave 5 includes a broadening market, with the main group of drivers of growth being stagnant. Wave 5 is also characterised with euphoria, sometimes things looks rossy, bright and never ending bullishness before an abrupt pivot down.
Wave 1 (or Sub-Wave Extension, 2016–2018): From ~4,266 (Feb 2016 trough) to ~8,109 (Sep 2018 peak). This is often labelled as an impulsive advance, subdivided into five smaller waves, driven by post-financial crisis recovery and tech innovation.
Wave 2 (Correction, Late 2018): A sharp 3-wave (A-B-C) zigzag down to ~6,190, retracing about 38.2% of Wave 1 (Fibonacci level). This aligns with classic Elliott rules for wave 2 corrections being deep but not exceeding the start of wave 1.
Wave 3 (Extended Rally, 2019–2021): The strongest impulse, from ~6,190 to ~16,057 (Nov 2021 peak). Subdivided into five sub-waves, with extensions in sub-wave iii, reflecting the pandemic-era tech surge.
Wave 4 (Major Correction, 2022): A complex 3-wave decline (A-B-C) to ~10,213 (Oct 2022 trough), retracing ~38.2%–50% of Wave 3. Sources describe it as a "setup for higher highs," not the end of the bull cycle.
Wave 5 (Ongoing Advance, 2023–2025): From ~10,213 to current, but really near the peak of wave ((v)) 5(3), with prospect of a deep corrective. Character of the end of wave 5 includes a broadening market, with the main group of drivers of growth being stagnant. Wave 5 is also characterised with euphoria, sometimes things looks rossy, bright and never ending bullishness before an abrupt pivot down.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.