We can see that for
the most part of January that the wave pattern has changed again, giving us waves that overlap at critical points. This effectively kills the idea of an impulse. This has been pretty well part of my theme anyway so what else is new. Any diagonal wave structure, including ending diagonals, I count out using labels like this. (ABC1, ABC2, ABC3, ABC4, and ABC5). For the sake of expediency, I don't always do this because I don't have free time to do all the ones that should be labeled this way.
A few days ago stocks hit another bottom and they started a very impressive run, which also looks very impressive looking. But the impulse theme falls apart and therefore I have to treat it as another false counter rally. This counter rally is now pushed to the extreme, but a bit more would not hurt.
This all means another potential "C" wave bearish phase could happen from which we have another major bottom to rally from. If another three wave decline crosses to new lows that is fine as well.
As of 2016 I will always try and make my trend lines parallel to each other and diagonal wave will fall out and away from these trend lines. Stability as a reference point is more important than trying to show you pretty throw-under or throw-over waves which mean very little to me.