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Saturday, June 2, 2018

2 June 2018

     This chart shows a possible count where everything fits within Elliott Wave rule.  The count from A to B can be made using w-x-y.  But it still looks like a perfect five count and that's why this past month has been so difficult and why some chartist may be leaning toward the bullish count below.
     Trying to make the B to (i) work as any thing but a three count is beyond my imagination. So to count wave B to (i) as impulsive, simply does not work any other way than an ascending diagonal. So both the bullish and the bearish charts agree on this ascending diagonal.
   The fifth wave can end short or past the trend line so the Andrews Pitchfork may become very useful in determining the range of Monday's move if it continues up, but it could be very close to starting a huge downward move, but don't get sucked into believing it is the start a huge move past 2550 until that happens as both the bullish and the bearish charts are expecting a downward move.
I see no way to count the chart past (4) as impulsive other than an ascending diagonal also shown in the top hart. There are too many wave fours that overlap wave one.  The market continues to gain so I'll admit my faith in the bearish count is being tested. The look of wave B to C really appears more like five waves than the wxy I've shown in the bearish chart,   Maybe it will become clear in a month or two but this is what we have now.  Until 2550 is broken there will not be any way to know.

So the real question is do you like the wxy count or the five count as shown below.

It would appear that we are close to the end of either the first wave up to new all time highs on Wave (5), 
or the end of Wave [II] and about to continue down war in a devastating crash.   
Either way it looks like an ascending diagonal about to come to an end.

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