Often the market follows a path that I expect and hits my target while there's times where the market proves to be like a spoiled child that won't behave. So Monday, I set the stage for the unexpected with the following chart with the expectation that we would possibly see another round of selling pressure or that w.4 had already completed. At this point I must concede the bearish count and adopt the count in the chart where w.5 of w.(3) is now underway....
.... but this count comes with another potential problem. That being if w.5 of w.(3) terminates at 1432.24, then w.3 < w.1 and w.5 thereby breaking an Elliott Rule. Currently, w.1 is already longer than w.3 so if this labeling is correct then w.5 must end prior to 1432.24. Notice the cloned line of w.3, extended from w.4. This would indicate that w.5 = w.3 at 1413, so that's my line in the sand to maintain this wave labeling. As more bars of w.5 are added to the right side of the chart I will be able to provide additional upside targets. For now, the minimal expectation is a new recovery high.
Best of Trading
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