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Thursday, October 4, 2012

Elliott Wave Update ~ 4 October 2012

The leading diagonal (LD) count is still a possibility as best shown on the Wilshire 5000.  One reason is that looking at a 15 minute chart, prices have maintained inside a neat sluggish sideways channel in an overlapping manner since the recent price low.  Remember one has to have patience with triangles no matter what type.  But there is now no more room for this possible triangle to grow.  So everyone is waiting on the glorious jobs report.

Admittedly its not a great LD pattern as wave iv has gone on for a bit. However the red ragged side channel is still intact.  AND remember my quote from Prechter where the guideline is that wave ii and iv of a leading diagonal usually retrace between 66 and 81 %. Well the Wilshire has retraced wave iv at - 81.3%. So hang in there!

Should prices "pop" big up tomorrow (due to a reaction to jobs report?) then Minor 5 up is probably confirmed as playing out.
Top ALT count is Minor 5 within Intermediate wave (C) of a double primary zigzag within a cycle wave b (or x).
DJIA shows this double cycle-sized zigzag the best. As mentioned a few weeks ago, even if prices have peaked, we can already label this the way it is shown below.

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