Wave 5 Extension ScenarioDaneric mentions a scenario where upon wave 5 may extend. He comes up with a target of 1302.
I figure we should explore this option by applying what we know about wave structure and the Golden Mean using Fibonacci math.
According to EWP, "Wave 4 often divides the price range of an impulse wave into the Golden Section. In such cases, the latter portion is .382 of the total distance when wave 5 is not extended and .618 when it is." See the figure below
Golden Section with Wave 5 ExtensionI previously wrote about this concept here.
[3:40 PM Update]
5 MinThis chart is an internal count for Option 1 below. Waves 2 and 4 appear to alternate well and a 2-4 channel projects 5 completing at the mid channel if it = 1 near 1290.
EOD Update
Bounce right at the 20 SMA on the hourly.
Option 1This continues to be a valid count, granted with some adjustments as I'm trying to sort out the waves 3s and 4s.
I believe we saw the conclusion of a complex corrective flat for wave 4 right before the close.
Tri OptionThis option is also still on the table. Instead of a wave 4 pullback as option 1 highlights, this may have been a wave 2 of 5 pullback.
INDUA possible ED for INDU?
BEAR COUNTHere's a start to a potential bear count. We'll have to keep our eyes on this one. It's not far from invalidating itself though, so we'll see tomorrow.
