|ES E-Mini S&P 500 8-HR Potential Diagonal Lower|
Yesterday's lower daily low in the DJIA is where the new b wave of minuet (iv) is in the ES chart, above.
Today was likely the c wave higher. I called for a possible truncation in the fifth wave of the c wave in real time, and it may have done that, but tomorrow is needed to clarify whether a truncation occurred for certain. The advantage of another up wave today was that it made wave minuet (iv) larger in time that wave minuet (ii), something we discussed in the live chat room. That is the most common form of the expanding diagonal, that the fourth wave takes more time than the second wave. Note than minute ((iv)) also currently takes more time than minute ((ii)) in the above chart.
In order for both diagonals to complete properly, the futures price should still trade below 2304, as shown by the 100% line on the chart. Any higher high above 2363.25 (futures) will invalidate the interior wave (v) diagonal because in an expanding diagonal, wave (iv) can not travel beyond the end of wave (ii). And now, anything over 2375 (futures) will invalidate the downward diagonal as a whole.
So, I was considering that lower daily low for the DOW yesterday, and I had a thought that might wind up synchronizing the DOW and the S&P in time at the lows again. I presented the idea during live chat, and will also present it here. It is based on the question, "just why did the DOW have a marginal lower low yesterday?"
|DJIA - Two Hour Bars - Potential Contracting Diagonal|
I can't say for sure but wave minute ((iii)) is a marginal new low, and wave minute ((iv)) currently takes less time than minute wave ((ii)) - as is usual for a contracting diagonal. I do not know that minute ((iv)) is over yet. Invalidation of a contracting diagonal in the DOW is above minute wave ((ii)).
Before the down wave is over, we might expect to see a triangle in the last wave - particularly of the expanding diagonal S&P500.
Well, that's enough for now, and remain flexible and patient as the whipsaws are likely to continue while the waves clearly do not follow The Eight Fold Path guidelines, meaning they are clearly not impulses.
Have a good night.