The story lately has been seemingly about overnight gaps up which go on to make marginal higher highs and then sell off a bit. Yesterday, we said if there was a higher high today - which we could see one possibility for - just move wave (iii) to the right until we get a clear downward overlap.
Today and yesterday - from late in the day - we were 'almost able' to count an impulse up. It needs one more wave up, perhaps tomorrow; perhaps not. However, that leaves us with this possibility inside a diagonal wave (iii).
|ES Futures - 2 Hr - Within Wave (iii)|
Yesterday's current b wave down broke the up-trending diagonal a wave's lower trend boundary. But, it is relatively short in time. This means if an impulse finishes tomorrow and then sinks, there are still two possibilities. It could 1) end wave (iii) with a c wave up, or 2) be only part of a larger b wave flat correction in time and then finish wave (iii) with a more impulsive c wave up.
The internals of the a wave diagonal up were verified. They fit like a glove in both price and time with v < iii < i, and iv < ii in both price and time. Of course wave iv overlaps wave i without traveling below the low of ii or exceeding wave ii in length.
On the larger time scale, wave (iii) is still shorter in price and time than wave (i), and overlap with wave (i) is still be looked for as confirmation that a true diagonal is playing out. All we can say right now is the wave forms are choppy as heck.
Have a good start to the evening.