Having taken out the swing highs that we previously identified as wave 2, we are now in a position to revise our count. Look for ideas in tonight’s update. For the moment, nothing alters our overall bearish view. To do that, we’d need to identify a larger degree upward impulsive move.

The most obvious way to count a possible larger five up is shown in green on our 10 minute chart. For the time being, it shows divergences on both the Elliott Wave Oscillator and MACD at today’s intraday highs. A good impulsive move up should give us higher highs on these indicators. So a bullish view would require green [iii] to continue extending upward to new highs and put in new highs on our technical indicators.

We need to watch these indicators closely, because there nothing that prevents prices from heading up and doing just that. A break below Dow 10,150 would help rule out this poissibility, but wouldn’t prevent higher prices from a more complex correction than we currently have counted. At the moment, no down move is confirmed; just possible.

[Click image to enlarge]

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