At this time the DJIA still looks like it is in a fake rally and it even crossed to a new high, with a three wave pattern. That makes sense to complete a run, but we are coming up to this Fridays jobs report, which does drive the markets (investors and traders nuts). Wild swings that make no rhyme or reason can and do happen, as the markets starts to swing days before the actual report.
The markets might swing down and then violently change direction the other way, which is always a challenge for any wave counter
. During this first Friday of a new month may wave counts get destroyed and we have to start all over again.
There is the chance that a diagonal 5th wave may still happen, so that is not ruled out, but also a violent swing to a new downside, could finish this off as well.
So far this so called counter rally has taken longer than I would like to see, but rallies against the bigger trend, tend to act this way.
We are not in a SC or GSC degree world, even if the markets go wild and dropped 11,000 points to DJIA 5000, as it is impossible to confirm any wave count by price alone. This goes against all conventional EW thinking, but from my perspective no part of any SC or GSC degree wave action requirement has formed in the last 15 years!
The DJIA is still pushing to the downside so that is a good thing in the short term.