EWI has relied upon the Williams 5/34/5 MACD for years to distinguish wave 3's from wave 5's. Bill Williams strongly recommends interpreting his 5/34/5 SMACD in this fashion.
The Williams 5/34/5 MACD of the DJIA in both the monthly and weekly time frames is now the highest it's ever been thus indicating that we are in Intermediate Wave 3 of Primary Wave 3, NOT in Primary Wave 5 which is EWI's count. The SPX monthly reached it's highest so far in the monthly in 2015 and the weekly hit it's highest ever this past March far exceeding is 5/34/5 SMACD from the 1990's.
I just sent an email to EWI asking how this affects their analysis.
Chief has been espousing this view for a long time. This is the only technical tool I'm aware of to distinguish Wave 3's from Wave 5's and it now confirms his view in both the Dow and the SPX charts.
Besides noting this signal, I'm also wondering if anyone out there is aware of any other technical tools to distinguish Wave 3's from Wave 5's.
Edited by Geomean, 12 October 2017 - 09:50 AM.