A Compelling Case - Two Charts

With 170 candles on the daily chart (nicely meeting the guideline of 120 - 160 candles), the Elliott Wave Oscillator (EWO, or AO) paints the expanding diagonal pattern below on the DJI and its YM futures. We have commented on it here before. The EWO is currently red and declining. That doesn't mean there can't be more bounces. Yet price is still under the EMA-34.

Dow (YM) Futures - Daily - Pattern at 170 Candles

The chart, if correct, shows 3-3-3-3-3 ending diagonals at two degrees of trend. Overall, Minor wave 5 in its entirety would be an expanding ending diagonal. The trend lines and the apparent three-wave structures are just very compelling, even though, overall, the wave gives a 'five-count' in this configuration. It is just an overlapping one. Then, wave (c) of Ⓥ would also be an overlapping contracting diagonal five-wave-structure. Further notice, according to The Eight-Fold-Path Method that every significant numbered wave is on an opposite site of the EMA-34 for form and balance.

And continuing to count by "fives" here is how the Minor wave 5 would fit into the weekly picture.

Once again, this is a best attempt to count-by-five with alternation. The alternation from the bottom would be "short two, long four" at the minute level, and - just the opposite - "long two, short four" at the Minor level with the ending expanding diagonal as the Minor 5.

Additionally, I have done everything possible and literally bent-over-backwards to make the first wave off the bottom an impulse that fits with degree definitions. It works in the futures, where all the price excursions and open trading hours are available for examination. And only one modification is needed in the DJIA cash to make it work - wave circle-iv, ((iv)), off the bottom becomes a barrier triangle instead with a non-overlapping (e) wave.

Wave 3 is just longer than Wave 1. And wave 5 is just about as long as wave 3 but not quite. But that is of little significance because wave 3 is not the shortest wave.

Would I have liked a longer wave 4 in time? I personally would have, but the wave principle and the markets haven't provided as much, as yet.

You will note that wave Minor 5 is longer-in-time that Minor 3, so it likely should not be considered a lower degree "b" wave of a Flat, or it would again break degree labeling definitions. The two waves should likely be considered as the same degree.

In addition, this entire wave is a herky-jerky mishmash of overlaps off the bottom and overlaps near the top. It gives the impression that something is going on with the wave-count other than making impulses more characteristic of the middle of the trend. Is it the end of the trend? Time will tell, but the evidence is very compelling.

Have an excellent rest of the weekend,

TraderJoe