A wonderful opportunity to test a tenet of Elliott Wave Theory lies before us at this moment, before we can use hindsight to fix our wave counts (hehe).
In Elliott Wave Theory, wave 3 cannot be the shortest wave. One reasonable way to count the structure from the March lows is as I have it labeled above. If that is the correct count, wave 3 looks pretty short, but since it is shorter than wave 1, then wave 5 cannot be longer than wave 3. That is a hard rule.
So, by using the fib extension tool with precision (magnets), if we extend the length of wave 3 to what we propose is wave 5, then wave 5 cannot exceed 3432.20 on the nose.
And what do you know, we closed today at 3431.30 after hitting a high of 3432.10. If this is the right count, then we have no room left to go and we should be done and we should now correct.
Now, as an alternative (below), if we move wave 4 over to the next low made on June 29th, then wave 5 cannot exceed 3466.2, a mere 1% move above (but this count doesn't look as good to me).
So, we are either already there or virtually there.
But, if it doesn't work out, then we must make some other count. :)
In Elliott Wave Theory, wave 3 cannot be the shortest wave. One reasonable way to count the structure from the March lows is as I have it labeled above. If that is the correct count, wave 3 looks pretty short, but since it is shorter than wave 1, then wave 5 cannot be longer than wave 3. That is a hard rule.
So, by using the fib extension tool with precision (magnets), if we extend the length of wave 3 to what we propose is wave 5, then wave 5 cannot exceed 3432.20 on the nose.
And what do you know, we closed today at 3431.30 after hitting a high of 3432.10. If this is the right count, then we have no room left to go and we should be done and we should now correct.
Now, as an alternative (below), if we move wave 4 over to the next low made on June 29th, then wave 5 cannot exceed 3466.2, a mere 1% move above (but this count doesn't look as good to me).
So, we are either already there or virtually there.
But, if it doesn't work out, then we must make some other count. :)