This wave count expects that we are within wave 3 blue to the upside.

Wave ii pink within wave 3 blue is seen as a complete double flat correction with an expanded flat for wave (w) green.

This wave count expects that waves (i) and (ii) green within wave iii pink are complete. Within wave (iii) green wave i orange is seen as a complete leading contracting diagonal. Wave ii orange is also seen as complete, although it has not retraced as deep as commonly seen for second waves following leading diagonals.

Further upwards movement is now expected within wave iii orange.

At 81.24 wave (iii) green would reach 1.618 the length of wave (i) green. Once we have more of the sub waves within wave (iii) green complete, then we would be able to calculate a more accurate target.

Movement below 76.53 would invalidate this wave count as wave ii orange may not move beyond the start of wave i orange.

Wave ii orange is seen as a complete double zigzag correction and therefore further upwards movement is expected within wave iii orange.

There are no adequate Fibonacci ratios at aqua degree for wave (C) aqua with wave (A) aqua within either of waves W and Y purple.

At 81.12 wave iii orange would reach equality with wave i orange. Once more of the subdivisions within wave iii orange are complete, then we would be able to calculate a more accurate target making use of the difference wave degrees as well as specific Fibonacci ratios. This target is therefore very conservative.

Movement below 78.19 would invalidate this wave count as any second wave correction within wave (3) aqua may not move beyond the start of the first wave. Movement below this point could however still indicate a possible expanded flat correction for wave (2) aqua. This I expect is less likely.

It is common for a second wave following a leading diagonal to retrace up to .786 the length of the first wave and this second wave for this main count has not achieved this. Our alternate therefore looks at wave ii orange extending further down.

Alternate Hourly Wave Count

This alternate hourly wave count sees wave ii orange as incomplete.

It also expects wave ii orange is unfolding as a double combination, but sees wave Y purple as a possible flat correction. Within a flat structure wave B has to retrace at least .9 the length of wave A. This provides us with a minimum target for wave (B) aqua at 79.21 where wave (B) aqua would have retraced .9 of the length of wave (A) aqua.

At 79.42 wave C red within wave (B) aqua would reach 1.618 the length of wave A red. This target is just above the minimum requirement.

We have constructed a trend channel about wave (B) aqua making use of Elliott’s channeling technique by connecting a line from the start of wave A red to the end of wave B red and placing a parallel copy at the end of wave A red. Wave C red may overshoot that upper trend line before reversing lower.

Once we have a full hourly candle below the bottom trend line then it is highly likely that wave (B) aqua is complete and that further downwards movement would be seen.

Movement below 76.53 would invalidate this wave count as wave ii orange may not move beyond the start of wave i orange.