Wednesday, September 7, 2016

Diagonal Done

Here is a chart for you being posted in 'near real time'. It was posted in real time in the live chat room. Yesterday, we said that the circle-d wave of the triangle would appear more proportional if the (c) wave went on to form an ending contracting diagonal and in which this (c) wave exceeded the end of the (a) wave so that the (c) wave didn't truncate.

Here is the diagonal we posted in real time. The chart of the SP500 5-minutes.

SP500 5-minute Ending Diagonal (c) wave of circle-d of the triangle
From this chart, we conclude that the circle-e wave of the triangle should now take place, and it 'could' retrace 78.6% of the up wave to circle-d. Whether it does or not, in order to validate the running triangle scenario, then wave circle-e must cross back over wave 3.



  1. HiJoe! I'm confused per usual. Where is circle d on this chart?. I see it on the previous chart so I just want to make sure I'm following this correctly. Also, when the circle-e does complete does that mean Intermediate wave 3 is now complete and we should be correcting into Intermediate 4, or does it mean that minor 4 is complete and there will be one more wave up to complete the intermediate wave 3, or does it mean none of the above and we've completed intermediate wave one as posted in your chart on Sept.1st? However with that last count we haven't traded below 2147 at this time. I don't day trade or swing trade...I'm just trying to keep the money in my retirement account safe--and I know you're the best at this. Thanks for the long term updates too.

    1. His Rose. Circle-d is on the hourly chart, not the five minute chart above. If we get a completed and correct triangle, there should be an up-thrust out of it as a wave 5. When / if the triangle completes properly I'll update the daily count here in the blog.

    2. O course, different time frames! Duh on my part. Thanks Joe for your kind response.

    3. O course, different time frames! Duh on my part. Thanks Joe for your kind response.

  2. TJ,
    I see the advance decline issues continue to make higher highs. Wouldn't it make more sense that this rally will go on for several more weeks to months?