Does Elliott Wave Work on All Time Frames?

Market Outlook: Down trend continuing, probably Minor 4
Market Indexes: Mixed, $TRANS new all time high
SPX Candle: Higher High, Higher Low, Higher Close
FED Posture: Quantitative Tightening (QT)

Before we get into the discussion of all time frames, we first will note that within the S&P500 10 Minute Chart, shown yesterday, we appear to have completed the (4)th wave upward of the potential diagonal, then made an A wave down, and a B wave up to the 78.6% Fibonacci level, as shown in the cash chart, below. I am again showing this chart not to confuse any issues. Wave (4) is now longer than wave (2); it is 1.27 x (2), and it overlaps wave (1), and counts as a zigzag. All as required.

SP500 Cash - 10 Minute Chart - Continuation of Potential Diagonal Count

So, during the day, it was possible to count the fourth wave starting as a Leading Contracting Diagonal A wave, as shown. Five waves in a contracting pattern, actually as 5:3:5:3:5 this time. Then, a short B wave down, and the gap up C wave to (4). As you probably know, this morning's opening gap higher was indeed closed within the first two hours of the session.

Then, we counted a five wave sequence down to the A wave of (5) lower, and were looking for a B wave upward, which occurred, and, as shown retraced to the 78.6% Fibonacci retracement level.

Because everything was so choppy, and relatively slow, for fun, we thought we would count the B wave up on the one minute chart - just to see if it would make any sense. The count below was developed minute-by-minute, in absolute real time, and I guarantee you that no part of the count was hedged or fudged or reverse-engineered after close.

SP500 - 1 Minute Chart - B Wave Count

So, the B wave count started with a clear five wave sequence to the ((a)) wave.  This meant there should be "at least" five more waves to follow in the upward direction.

This was followed by three waves down to the (a) wave, and then a "hammering" at the 2497 level that constituted the lower boundary of a triangle. You can clearly see each of the three-wave sequences that formed the triangle, and the fact that (c) and (e) are no lower than (a). The key to the triangle was the mid-triangle whip-around: very characteristic of a triangle. And then the contracting trend lines required of a running triangle. This running triangle is temporarily bullish and portended higher waves to follow. The presence of the triangle is what allows the ((b)) wave to take more time than the ((a)) wave.

So, then a five-wave sequence was counted out, live, and in detail, including the alternation in wave (iv), versus wave (ii). Wave (ii) is a sharp, and wave (iv) is a very slightly truncated flat. This ((c)) wave took more time than the ((a)) wave, and is another good sign of alternation within a corrective pattern.

Then occurred the most unmistakable ending contracting diagonal with a slight vth failure wave. Perfect to end the B wave overall, at ((c)) = 1.27 x ((a)).  This diagonal was completely retraced in less time than it took to build it - confirming it's diagonal nature, and this constituted wave ((i)) back down to the lower boundary of the trend channel drawn.

When wave (a) up was spotted, it was too short in time to correct all of wave ((i)) down, so, I hypothesized we might get a flat wave (b) which did occur, and, then, an ending expanding diagonal for a (c) wave, up. The key to spotting this diagonal was the little "hitch" in the middle of wave 3, up. If this diagonal was true, then it could not upwardly exceed the high of the previous ending diagonal's failed vth wave. And, it didn't, by tenths of an S&P point!

Then, again, true to form, the start of the diagonal was exceeded lower in less time than it took to build the diagonal, validating this latter expanding diagonal and most likely initiating wave ((iii)) lower, after making a flat wave. Notice how the Elliott Wave Oscillator now confirms a third wave in progress with the lowest low on the chart!

So, look things over and consider the question seriously, "does Elliott Wave work on all time frames?" You bet it does! Speaking of time frames, the greatest single lesson I have learned in Elliott Wave work is to give the corrections a lot of time, often more time .. in terms of numbers of candles .. than the impulse waves. Once I saw the A wave down within the likely wave (5), that is what allowed me to have the patience to count out the B wave up in this excruciating detail. I certainly will not do that every day.

But I think for this particular example, it was worth every minute! What do you think? If you review this one chart in detail you will find, included is about 80 - 85% of everything you need to know about Elliott Wave theory, period. No gimmicks, no broken rules, no unheard of patterns - just real high energy and accurate wave counting.

P.S. With the Dow transports new recent all time high. It likely confirms that the overall upward wave signature is not over. I will discuss best options on the weekend.

For now, have a very good start to your evening.
TraderJoe