The idea of violating Neely's guideline regarding wave three being entirely above the 0 - 2 trend line is and was still disturbing. So, in the work of Elliott Wave, I took a look with fresh eyes, and found that one of our commenters had posted the best solution. That solution is shown below, and it was first posted by Erik B. I couldn't see the entire chart at the time, and couldn't see the entire count in my mind, but now it is pretty clear. So, before I post the chart let me give kudos and full credit to Erik for this idea.
|S&P500 Cash Index - Four Hourly - Ending Diagonal Minute ((c)) Wave|
What makes this chart possible is the clear and unmistakable zigzag down from the Mar 4th high. And yesterday's higher high reinforces a potential diagonal pattern.
Because minute ((c)) is not yet 62% x minute ((a)), then there is no degree violation between (i) of ((c)) and minute ((a)). There is also not a 'time' violation between (ii) of ((c)) and minute ((b)), but there is definitely a price violation between (ii) of ((c)), and minute ((b)). Now, the question is, does that matter in a zigzag? After all, we are not counting increasing extensions within a third wave in this count.
Importantly - all of the wave 3's are above their respective 0 - 2 trend lines. Yay! Again, will all thanks and due credit paid to Erik.
Have a good start to the day.