Friday, January 27, 2017

TIme Has Run Out -- Mid-day Update

As of 11:15 AM today, time has run out for the diagonal to be an ending diagonal. As a leading diagonal it could be sub-wave .i of minute v; as below.

SP500 Time Has Run Out on an 'Ending Diagonal'

Although the correction can deepen if it wants to, it does suggest there will be 'gap support' of some type and new higher highs are possible. Again, 2301.26 was only the limit of the diagonal, not the limit of upward price movement in total.

P.S. There is an another, equally valid, way to count .i as the first wave of a diagonal overall - just count 2284 as A of the larger diagonal, 2280 as B, and 2301 at C (the diagonal would be the C wave) of minute (i). In either case, the upward wave does not appear over just yet.



  1. Joe, I'm trying to understand your thinking process here. If I read correctly, you're counting 2280 to 2301 as a diagonal, and since the market didn't come back to 2280 fast enough, then that eliminates the possibility that it was a 5th wave ED. Therefore, it can only be a LD, and that also means that 2301 has to be exceeded before 2280 is taken out. Correct?

    In regards to the alternate count, which would mean that 2280 to 2301 was a C wave ED, wouldn't that also be eliminated for the same reason that the 5th wave ED was eliminated?

    Finally, I know you don't like to play "what ifs," but I'll give it a shot anyway. What if 2280 is taken out before 2301 is exceeded? How would you count the 2280 to 2301 move in that case? Thanks.

    1. Hi mblcta -

      1) Yes. 2) Probably, that's why it's the alternate. And it was not the original count, 3) iii at the high (see that 4.23 Fibo extension up there?; it's not there for no reason), and as long as wave i was not overlapped lower, then iv down. Hope this helps.


  2. It's fun to see that there is a timing parameter to ED's.

  3. This new count makes more sense. I think we will see this rally go for at least 5 more months.

    1. It's not a new count. It's a sub-dividing wave of the current count. And it has strict limits. Wave Minor 5 can't become longer than wave Minor 3, because Minor 3 is shorter than Minor 1.

  4. Hi Joe. What is the highest point minor 5 can travel?