Monday, April 17, 2017

Count Continues - 4

ES futures dipped overnight, and then began a very low volume rally right into today's close. Regardless, the interior diagonal downward, shown on Thursday's post can be counted as a completed structure in both the S&P500 cash index and in the Dow Jones Industrial Average. It is an expanding diagonal in the S&P500 and a contracting diagonal in the DOW.

ES E-Mini S&P 500 Futures 4 Hr Chart

This downward wave is either sub-minuet wave i, of minuet (iii), of minute ((v)) downward. Or it is a minute ((c)) wave as an alternate. At this point, only travel over that 2365 level noted in Thursday's post can tell them apart, because in an impulse lower for minute ((v)), wave sub-minuet ii may not travel beyond the start of wave sub-minuet i. However, the downward wave in the ES and S&P formed correctly to this point, with all of the waves measuring properly for an expanding diagonal.

If the invalidation level at 2365 is exceeded to the upside, then it is 'possible' a very large triangle is being built as a fourth wave in an upward count, but this remains the alternate as of this time. Either way, we said to expect whippy market behavior and today was certainly no exception.

Cheers and have a good night. Sorry for the late post - there were some issues with the Blogger editor preventing uploading of charts until now.

TraderJoe

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