As Long as We're in the Channel

Below is the ES 2-Daily chart which is only provided so the degree labels of the current wave count can be determined. The degree labels are actually based on the Dow's locations BUT the ES may have its recent Minor 1 low located on the 2 May low or a slightly lower low. Then, wave Minor 2 is still corrective to Minor 1 and 1 is shorter than (1). As it stands now, the new minute ((i)) is shorter in price and time than the prior minor 1 in the same direction thus qualifying as another sub-wave.

ES Futures - 2 Day - Degree Labels

Price is currently below the lower parallel trend line - gray dashed - of the base channel as shown. Remember, as Elliott taught, the base channel is drawn from 0-to-(2) of whichever wave degree is being considered and an initial parallel is placed on (1). It is now in the magenta acceleration channel which is drawn from (2) to 2, with an initial parallel also placed on (1). As long as prices remain in the acceleration channel, then an impulse count attempt remains in effect. Price may take a relatively large price excursion upward for a minute ((ii)) wave, up. If so, any lower low following minute ((ii)) would likely be a third wave, minute ((iii)) and may serve to extend Intermediate wave (3) lower. 

A Minor 3 wave can expand significantly as long as the interior wave sequences become of increasingly smaller degree. Sometimes - because of gaps - this becomes very difficult to gauge.

Let's see how it goes.

Have a good rest of the weekend.

TraderJoe