When he made this call on April 2, everyone thought he was crazy.
"Wave one is comprised of five waves up, with wave three a perfect Fibonacci ratio of 1.618 times the length of wave one.
Wave two is comprised of three waves down, referred to as A-B-C. The A wave and C wave should be equal in length. Given those requirements, wave two will bottom at 390, plus or minus a point or two.
So far the waves are performing exactly as the Elliott Wave Principles dictate. The 390 level is also exactly a 50% retracement, a natural golden ratio.
This is where you place your buy order. It's where we expect the bottom to be, the beginning of a third wave up, the extent of which is typically 1.618 times the length of wave one, so it may be a long ride to the upside. In this case, the length of wave one is 627 points, therefore the wave three target is:
627 x 1.618 = 1014 added to the bottom 390 = 1404
The third wave is the strongest and longest of the five wave form, often referred to as an impulsive wave. This is the golden egg."