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The price objective for the termination of the fifth wave fell in the $611-$625 zone. Various Fibonacci relationships projected this range for the fifth wave. The first objective would be $611 if Wave 5 equals 50% of Wave 1. Next, would be $617 if Wave 5 equals Wave 1. If Wave 5 equals 62% of the beginning of Wave 1 to the end of Wave 3, the objective would be $624. The final Fibonacci measurement is Wave 5 equals Wave 3 and that objective would be $625. One other consideration is the gap area ($612) that occurred during the June island top.

This important price zone at $611-$625 was not far above the Gann 4?1 angle from the June high during the week of December 5 — another coincidence of price ratio objectives with an important Gann angle (point R). I was looking very carefully for short-term reversal patterns to go short the week of December 5 if price was in this resistance zone. Would the market hand me another gift with a reversal day at this important price level in this important time period?

December 5 resulted in a reversal day with an intraday high at $620, precisely within the indicated price resistance zone. So, it's happening again—the completion of an Elliott Wave 5 pattern, precisely within an important price zone of resistance and just two trading days prior to the time period where a change in trend is likely.

The time, price and pattern analysis was once again confirmed by a short-term reversal pattern. That was all the indication I needed to go short near the close on December 5 with minimum exposure . I was short at $614 with a stop at $622, $2 above the high of day. I expected a substantial correction of the September 26-to-December 5 rally. The market confirmed my analysis three days later with a strong close below the Gann 1?4 angle from the previous low. That is the position I am at as of the writing of this article. Time will tell what further profits will result from my time, price and pattern analysis.