While the market is having another 'kickoff the next advance' party: a powerful gap up opening, and plenty of follow thru. Pity those shorts of the last three days: see tuesday update. I've been examining this entire uptrend, thus far, using the 15 minute charts that I post. The daily bar charts can provide excellent information, but one needs to look within the daily activity to determine exactly what is going on. I'm going to list below every wave, from a micro perspective, for those interested: in learning EW, just following the uptrend, those doubters of the validity of EW, or even those amazed (such as myself) that investor psychology can actually be tracked on a piece of graph paper, nearly minute by minute. The uptrend thus far in the NAZ, as labeled on the chart NAZinside:

 

2026  start of uptrend, end of minute wave ii.

2073  wave i of 1

2042  wave ii of 1, zigzag - one day

2096  wave iii of 1 

2058 (2081)  wave iv of 1, triangle - 2 day (notice the overlap of wave i, only acceptable in triangles)

2121  wave v of 1, end of wave 1.

2064  wave 2, zigzag - two days

2126  wave 1 of wave i of wave 3

2109  wave 2 of wave i of wave 3, flat - one day

2182  wave 3 of wave i of wave 3

2163  wave 4 of wave i of wave 3, complex correction - three days

2207  wave 5 of wave i of wave 3, end of wave i 

2177  wave ii of wave 3, zigzag - two days

2269  wave iii of wave 3

2230  wave iv of wave 3, complex correction - five days

 

Notice the first five wave sequence: 2026 - 2121. Within the advance the upwaves were separated by two different downwaves: zigzag and then a triangle. We labeled this entire advance wave 1.

Then the correction: 2121 - 2064. A simple zigzag two days in duration.

Now, notice the second five wave sequence: 2064 - 2207. Within this advance the upwaves were separated by two different types of downwaves: flat and then a complex correction. We could have labeled this wave 3. And, here is why we didn't.

The correction: 2207 - 2177. A simple zigzag two days in duration. Both corrections after each five wave sequence were identical. We must have alternation! Thus, the second five wave advance could not be wave 3, but a subdivision of wave 3. When identical corrections occur, one right after the other, the prior advances are not of the same degree!

The next advance: 2177 - 2269. I am not calling this a five wave sequence, just an impulse advance, because the waves are not easily discernable on a daily bar chart. We can see this six day advance unfold impulsively on the 15 minute chart, but it was totally unlike any of the waves that proceeded it. For now, I am conservatively going to label this advance wave iii of wave 3. It might be something of a lesser degree!

The correction: 2269 - 2230. A complex correction five days in duration. Now, this correction adds more credability to the wave iii of 3 count. Notice the alternation between the previous correction (2207 - 2177: a simple zigzag) and this correction.

 

I've been following the Elliott Wave for more than 20 years, and I am still amazed that it unfolds as accurately as that timepiece on your wrist. One only needs to read what it is graphically illustrating, rather than as most do, read into it what they want to see. If the stock market is truly a discounting mechanism of future events. Then the Elliott Wave is a graphic display of the totality of all those events. Food for thought!