It could indeed be a failiure swing.. The problem is, of what degree?
Degree is the most subjective/twisted part of elliot wave and there are no clear cut objective answers at all times.
I suggest reading about elliot oscillator and how to count waves.
There is a manual on this by Joseph of Aget fame using
the 5/35 elliot osc...
I could parrot what Joseph/williams have said, but it would be more enlightening for you to read the full file.
Bill williams has also done a rehash of elliot osc and wave counting for determining end of w5.
Anyway look at w5 of WI ultimate as a move which marks a bull market top for 2-3 years..
This kind of top will not be formed at a p.e of 10-20. Such a top is likely at a p.e of 30-50
Study any major world index to convince yourself.
IF we do go sideways now its just that..
Sideways..
for 5-6 months.
But you won't top out so easily.
We are currently at 20x trailing earnings roughly
Reason is there are value buyers waiting at 15-16x(trailing and 13-14x forward) earnings which is not too far away from here..
Go to
www.4shared.com/google
search for any books by joseph , anything on aget, elliot osc, w5
then bill williams, trading chaos.
These will show you how to use the oscillators/divergence to figure out end of w5.
Just keep in mind a w5 extension gives no divergence, its , straight up, straight down..
People try to study all theories in isolation..
Avoid the temptation to do so.
Everything is connected, Its just a question of seeing the connections.