The primary count of Minor 4 corrective of Intermediate wave (1) down is abandoned even though technically wave 4 has not yet interfered within wave 2’s price range. However, today was too strong of an up day in the context of a “corrective” Minor 4 wave. Therefore, the count has 2 possibilities:
1) The market traced an overall major corrective 3 wave pattern from peak to recent low and now will eventually make a new all-time high. This is shown here on the DJIA: (This is NOT my primary count though – it doesn’t look right)
2) The market is actually experiencing a wave “one-two, one two” bearish down event. THIS is the primary count. The upper open gap may even be closed in this proposed count. Overlap may even occur from peak 2 into the previous wave (2) price range. This is the top bearish count. However, things would have to reverse fairly quickly in this count. A quick price peak and then a persistent drive lower.
