|SP500 5-Minute Cash Chart to Minute ((i)) or Minute ((a))|
Wave 1 of this chart was counted as a contracting leading diagonal, and it was a "good call". There was a short wave 2, and then a significant wave 3 occurred on a steeper angle - the trend line of which was not broken. Wave (iii) of ((iii)) of 3 occurs on the maximum of the Elliott Wave Oscillator, and wave ((v)) of 3 occurs on a divergence and on either the 100% x 1 wave or 127% x 1 wave depending on exactly which peak of 1 is used for the measurement. In either case, it is exactly on a Fibonacci relationship, exactly as The Eight Fold Path Method suggests.
Today I called for a triangle wave 4 which ended precisely on schedule - to the five minute bar. Since then the high of ((b)) wave was broken to the upside, and the first wave of 5 labeled as ((i)) is a contracting leading diagonal. Here's one part of the count that I really want to cover.
Since wave 1 is a contracting diagonal, then wave 5 should not be a diagonal in it's entirety. This is a wave guideline, not a rule. It derives from the principle of alternation. I have already counted wave ((i)) within wave 5 as a contracting leading diagonal. This is OK. It is still just a sub-wave of 5, not all of wave 5. The day may have ended with wave ((ii)) of 5 complete or near complete. If so, there should be a gap up for tomorrow as wave ((iii)) of 5.
Part of the rationale for suggesting a gap up for tomorrow is that wave 5 would be quite short relative to the other waves in the sequence if it were to end here (let alone constitute a truncation).
Further, if for some reason there should not be a gap up tomorrow, then based on where the prior fourth waves are located, I have clearly delineated a Market Reversal Warning at 2348 - 50. This is because there is an ever-so-slight probability of a truncation at the high - since the Dow did not make a new high either. Let's see if we get that gap up. If so, and wave 5 completes properly, then we would expect at least three-waves down in the form of ((b)) wave, or a ((ii)) wave since that is the usual expectation after five-waves up.
In this example wave ((iii)) is a lower degree than ((iii)) and both are lower degree than ((iii)). If we complete a "first five-waves-up" tomorrow I will update the intermediate term charts then. The daily trend is still up until proven differently.
Have a great night!