Right or wrong on the wave count, the market has moved up/down in three wavelike structures from 1243.25. The expanding diagonal interpretation at the weekly and daily chart level has flaws. Absent of another identifiable wave structure, I'm sticking with it until price says I'm wrong.
Looking at the daily chart, each decline (1335.75- 1290.25) and (1367.25 - 1316) is too short, i.e. that the retracements according to the guidelines call for w.ii and w.iv should be .66 - .81 % of the proceeding wave. Both waves never challenged the 61.8% retracement. Also, w.iii circle should be longer than w.i. it isn't.
One clue that w.v is underway should be an increase in volume. Although I haven't shown it, volume was light during today's session and will need to pick up or another flaw may be developing. However, PRICE ultimately has the final say.
In conclusion, the count has issues but as long as we focus on one wave at a time we'll remain on the right side of the market. As of the time of this post, the Market has completed another three waves up from 1316 but looks to be making a fourth wave correction that would have us looking higher for the remainder of the ON session... possibly into tomorrow's daily session.
Let's see what tomorrow brings.
@wolfhound - it's good to have an extra pair of eyes. Thanks for catching the error. W.iv circle did retrace .618. My comment should have mentioned that w.iv barely retraced .66% per the guidelines. Given the other flaws, we still need to be careful.
ReplyDeleteMike