With the caveat -

With the caveat that we don't know that upward price movement is over we show two charts. The first is that of the ES 3-day futures just to show the forms of the two waves.

At this point the counts remain the same until they are distinguished as different. They are (w)/(i), (x)/(ii), (y)/(iii). There is a nice parallel going on the potential (y)/(iii) wave.  For the contracting diagonal, the wave (iii) must remain shorter than wave (i) by rule. However, many times there is (y) = (w) relationship in a double zigzag. That would occur at 4545.75 or above.

Here is a close look at the daily wave count inside the parallel channel.

If the time of the b wave is taken as equal to the time of the a wave, then we are in the c wave up at the upper parallel border with a relationship of c = a at 4,473 or thereabouts. And this wave is currently countable pending the nature of a small degree fourth wave (which may have occurred today on the FOMC report). But you know fourth waves. They can be intractable and seemingly go on for a long, frustrating period of time. So, there is nothing that specifically rules out higher highs yet, although the patterns seem to be getting quite mature.

On sentiment, keep an eye on the put-call ratio still down in the 0.55 range and with the 10-day moving average of the same nearing lows.

Have an excellent start to the evening,

TraderJoe