|SP500 30-Minute - Lower Low|
So, the best count right now is that of a triple zigzag downward, and because of the wave 'lengths' it could (but shouldn't) be considered an expanding diagonal downward. There is something wrong with the Expanding Diagonal. Usually the waves in an Expanding Diagonal get longer in time as they drive deeper in price. This one has each progressive wave getting shorter. So, again, we don't think it is a diagonal for that reason. We think it is a triple-zigzag B wave, lower. With a slight new high to follow.
The potential triangle on the Dow busted this morning (which we called in the real time chat room), and the Dow filled it's gap near the origin of the wave. Here's where we think the Dow is at this point in time.
|DJIA - 15 Minute B Wave|
Notice that an Expanding Leading Diagonal downward definitely can not be counted on the Dow because the middle leg is too short. We think that adds to the reasoning on the S&P 500. But, it is possible the Dow just made an awful ugly flat for a B wave. The two B waves 'would' go together. And possibly we are starting the C wave higher of minute-i of a diagonal for minor 5.
Once again, here is the overall two-daily chart of the S&P500 - showing where I think we are in the count.
|SP500 Two-Daily Preferred Impulse|
Remember, wave Minor 5 of Intermediate (3) can become longer. It just can not become longer than Minor 3 in this count. And there is no proof, yet, that Minor 5 is definitely over. Only traveling below Minor 4 would signify that.
But, it goes without saying we are likely "in the topping process". Look at those Dow waves on the fifteen minute chart and how choppy they are. Rest assured the market specialists and algorithms do not want us on board when they do - eventually - take the market down. That's what the "topping process" in the market is all about!
In terms of invalidation, the upward scenario for the Dow would be over if the low of the A wave is exceeded lower. Same with the S&P (but it is much further away).
Cheers and enjoy the charts!