A slightly modified potential downward diagonal still exists on the ES E-mini S&P500 Index Futures 8-Hr chart, as below.
|ES E-Mini S&P Futures 8 hr Potential Diagonal|
For this diagonal to hold, then 2388.75 should not be taken out higher before there is a new daily low. Because the potential wave ((iv)) is now higher than it was previously, then potential wave ((v)) does not need to travel as far lower to provide validation. But it would need to break below minute wave ((iii)) and also travel below about 2307 if a slight new high is made in the futures tonight.
The Dow's potential diagonal diagonal now looks like as is shown in the chart below.
|DJIA Cash Chart - 2 Hr - Potential Contracting Diagonal|
Again, a slightly lower low in each could allow both of the indexes to synch up towards the end of the month.
So, yet again, please remain flexible and patient as the whippy market behavior continues on light volume. Other items we discussed in live chat today were a) triangles, b) B waves up, and c) that wave Minor C of Intermediate (1) was forming a diagonal itself. But none of those seem to fit well with the Dow's count, above.
Have a good night!