The short-term potential triangle we were following broke lower and greatly upped the odds that Red (5) has won the count.
Now, the three-wave portions of the triangle may be portions of an expanding diagonal downward. The top may be forming a head-and-shoulders that technicians will recognize and provide a measured move criteria to the downside.
Still, we need to see the downward waves form properly. The third wave downward is already longer than the first wave. A fifth wave lower also needs to become longer than a third. If it does, the count would have significantly lower implications for equity futures.
It is getting tiring counting diagonals, but that is all the market has been presenting of late. I would rather count impulses, but they are getting harder and harder to find for the time being. Perhaps that situation will change soon.
Have an excellent start to the evening.
TraderJoe
This comment has been removed by the author.
ReplyDeleteContracting diagonal works but not ideal EWO.
Deletehttps://imgur.com/yHC6fNb
https://imgur.com/K9XgXng
DeleteSo, I am pretty sure (just not dead certain) that for the smaller degree 'b' to be constructed as you have suggested - outside of a triangle - is a degree violation in time. See link below.
Deletehttps://invst.ly/-trvk
In other words, you are saying that the smaller degree 'b' can take more time than its larger degree A wave. It at least made me scratch my head which is why I suggested the 'b' failure count at the next trough.
TJ
Thx
DeleteImagine if the whole year is like this price action
ReplyDeleteLol. It won't be, although part of it will be. At some point there must be a true third wave lower. TJ.
DeleteIt is arriving soon.
DeleteWhatever the squiggles, this ED looks weak, I can't remember one arching over to the 2 - 4 line and needing it for support twice now.
ReplyDeletemake it three
DeleteJust pure nastiness! Have a great weekend all.
ReplyDeleteIndeed. Despite the appearance of a developing down-trend channel, I am a bit skeptical we have topped. This is not the way high degree 3rd waves "normally" kick off. We all know of course, the banksters have ensured we are dealing with anything but, a normal market!
DeleteA new post is stated for the next day.
ReplyDeleteTJ