Another plausible way to get 1.618

In the prior posts we were following a wedge count downwards, and - because today was the first of the month with the potential inflows from the usual sources - expected it to break upwards. It did that today. That does not mean downward movement is over. Here is another plausible way to get a deeper 1.618 extension measurement on the ES 4-Hr chart in potential agreement with the EWO.

Several wedge possibilities were tentatively ruled out this morning because of the lengths of the waves. A third wave extension is now dependent on making an non-overlapping fourth wave, shown as iv, above. Again, it can not overlap with wave i, at about the level of ES 4,006. And, if there is a lower low on the Payroll Employment Report, that may qualify for wave v of wave (iii). Then a wave (iv) would take over shortly, possibly to head for the upper channel line.

Each of the subwaves sub-minuette i and iii are shorter in price and time that what would be minuet wave (i), and so degree labeling is currently adhered to.

Even though we got what we expected on the day, counting is darn difficult at this time. Let's see how it goes tomorrow.

P.S. You can move wave (i) one trough to the right to insure wave i is shorter than it.

Have an excellent start to the evening,

TraderJoe