We've laid out the larger counts. DJIA would probably count best as a double primary zigzag. Triple negative weekly divergence shows loss of momentum:
We still like the wedge count also as shown on the SPX below. If this is a bearish rising wedge, a collapse in prices should occur. That is the outcome of ending diagonal triangles.
Local candle action shows prices again trying to hold 1430 support and now well below the upper wedgeline again. Yet we still need a solid "lower low" to make the bear case stand out.
One can argue that wave 5 was truncated in a very sneaky expanding diagonal triangle. If this is true, it displays weakness in the wave pattern. Hence the fairly quick and steady drop in prices so far from the recent 1370 high.
The ending diagonal expanding triangle would count as this:
Wave labeling color code as follows (note - [brackets] used in lieu of circles for convenience sake) :
Grand Supercycle - BLUE - [I] [II] [III] [IV] [V] - [a] [b] [c] Supercycle - GREEN - (I) (II) (III) (IV) (V) - (a) (b) (c) Cycle - PINK - I II III IV V - a b c Primary - BLACK -      - [A] [B] [C] Intermediate - RED - (1) (2) (3) (4) (5) - (A) (B) (C) Minor - BLUE - 1 2 3 4 5 - A B C Minute - GREEN - [i] [ii][iii] [iv] [v] - [a] [b] [c] Minuette - PINK - (i) (ii)(iii) (iv) (v) - (a) (b) (c) Subminuette - BLACK - i ii iii iv v - a b c Micro - RED -      - [A] [B] [C] Submicro - BLUE - (1) (2) (3) (4) (5) - (A) (B) (C) Miniscule - GREEN - 1 2 3 4 5 - A B C
The content on this site is provided as information only and should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author and are for entertainment purposes only. Any investment decision that results in losses or gains made based on any information on this site is not the responsibility of the author. The author may from time to time make statements about certain investment vehicles and strategies, but it is not to be taken as investment advice. Again, it is just the author expressing his opinion only.
I like to chart and I am an avid student of Elliott Wave Theory. I combine wave theory with standard technical analysis to track market movements and predict future movements.
Disclaimer: I do this for fun (although donations are encouraged!). Due diligence is required on your part as my charts have been known to steer in the wrong direction from time to time.
I am not responsible for any monetary losses that you may occur. Feel free to bookmark my site! I will try an answer questions, but time constraints sometimes do not allow me to get to everything. I do answer most all email so feel free to drop me a line, usually I reply at night (I have a day job) Thanks!
daneric40 - comcast - net (was recently changed from Verizon)