Can't Yet Rule It Out ...

But it seems less probable. Any number of people are trying to make a triangle at the highs in the market. Currently, the only valid triangle I see would be like the one below. This is the daily chart of the cash QQQ index.

QQQ Cash - Daily - Potential Triangle

Today was a pretty heavy down day (1 : 2 adv-dec) in this index. But the daily EWO is in a place where a fourth wave could occur. Because today was a down day, and price is below the 18-day SMA in the ES futures, this tends to suggest that the daily bias is down, not up. For that reason, this triangle must remain an alternate until its structure is more proven.

But there are things not to like about this structure as a triangle. First and foremost is the size of the Ⓑ wave leg. It is greater than 1.618 which tends to suggest it is its own impulse. Further it is not clear that this Ⓑ wave is indeed the required zigzag. It isn't obvious. There is no big bend in the middle of the wave. Second is the fact that price is not really that near the apex of the triangle.

Still, is it possible for such a triangle to exist. It is just less likely. So, if it does occur it won't bug me much. At this point the triangle is legal according to the rules of Elliott Wave. Just bear in mind that seeming triangle patterns can break down (as diagonals or 1,2,i,ii) as well as up. So, be careful.

Have a good start to the evening,

TraderJoe