10/6/2008 9:54 PM pacific

Here is the original chart that I called Prechter’s Revenge and I first wrote about in the article Riding the Elliott Wave on April 15th, 2008. Immediately below it is an update of that chart minus the detailed wave counts.

10/6/2008 9:54 PM pacific

I have offered up every possible alternate wave count worth considering since April, right up until last week. There is no longer an alternative wave count that fits the price action down from the October high. Looking at the daily chart, in order to get the ratios to line up with the monthly chart for the end of wave 3, the 4th wave should not retrace up much further. 1086-1090 is a reasonable target. From there, the 5th wave down should be a symmetrical .618 extension of waves (1)-(3), which is also proportionally the same size as wave (1). However, wave (4) can technically retrace as high as 1136 without breaching the bottom of wave (1).

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