It's pretty easy to count 5 waves up in the SPX daily chart w/ wave iv completing @ Aug 1 & wave v on Aug 15. The idea of placing wave iii at Aug 15 and an ending diagonal or of making any kind of 5 wave structure up from a Aug 17 possible wave iv low, at least in my pea brain, pretty much died with yesterday's plunge and invalidation of having wave iv end on Aug 17.
http://www.stockchar...r=1472297703830 Moving a wave iv to yesterday's close and keeping iii at the 8/15 high likewise does not account for the 5 wave structure on the daily which has wave equality, extension & alternation as one would expect.
Yesterday's outside down close prints the classic popgun pattern. As recently noted by EWI the Popgun is a two-bar pattern composed of an outside bar preceded by an inside bar. So a logical alternative count seems, perhaps, to be that we are in either a wave iii or c thrust to the downside after an extremely long and narrow range structure. Hurst, DeMark, & Ermanometry analyses support that view.
http://www.elliottwa...to-Trade-Setups
That's at least something to consider. ( I acted on that potential count when I went short ESZ yesterday within a point or two of the high and can now move my stop to breakeven and wait and see if the 40 week cycle peak is behind us and if it is going to chart a high level consolidation or a more vigorous downward wave structure until the election.)
Opportunity knocks on your door every day-answer it.