|Running Triangle in ES Hourly Futures, and Five-Wave Thrust Out of Triangle|
As we have said before, this triangle 'can' end the upward movement of this wave set in that it would be the final correction before 'the last wave up dead-ahead'. And certainly the presence of a 3:3:3:3:3 Ending Expanding Diagonal in the futures is quite ominous. Technically, wave (5) did not fail to make a new high above wave (B), and neither did it fail to make a new high beyond wave (3) of the diagonal.
Also, the DOW and the S&P made new highs above their respective prior (B) waves, and the Wilshire 5000 yesterday made a new all-time high, joining the indexes that are expressing the Primary V sequence.
However, wave (5) did fail to exceed the length of wave (3) by two ticks - we think that is a reasonable error at this point - given the historically highest level of stock prices 'ever' and the strained sentiment. Still, for something meaningful lower, prices would (and should) accelerate lower from here.
Let's see how things progress. It does appear we are in a correction "of some degree". We need to see if price will start 'impulsing lower' for a larger wave set, or whether they will only slowly decline in another corrective wave.