Upward Correction, So Far

The current upward wave count from the 18 Aug low is currently a three-wave affair. It is roughly at the 50% retrace level, but it may not be completed yet. The ES 4-Hr chart from the low is below.

So far, we have the expanding diagonal - which, with the higher high today - proved to be leading. After the diagonal was a quite deep 80-90% wave, and the current up wave is an impulse. So, if this is a corrective structure, there is good alternation.

We said yesterday, if we didn't get a flat wave for a deeper correction of Monday's waves and instead got higher waves in the overnight, it was possible to get an extended first wave count x①, and that is what turned out to be the case today. IF this is a c wave up, it is about due for a fourth wave.

Within this impulse wave ⑤ could be almost as long as wave ③. And, if wave ⑤ occurs with the right lengths then it might get price up to the 62% or 78% retracement level.

Keep in mind the Principle of Equivalence. If price is to go over the high again, or near it, then it is possible that a,b,c is i,ii,iii until proven differently.

Have an excellent start to the evening.

TraderJoe

The current