I have made it pretty clear how much I hate any two trend lines that force any type of a throw-over or throw-under situation. For the last few months I swore off in forcing a trend line as it also distorts wave counts. Unless I specifically want to make another point all my trend lines will be parallel in nature.
I have worked this as a diagonal before, so this is basically the same pattern taken from inventory except updated and with a bit more detail. The impulse pattern started to fall apart 5-6 days ago as the patterns started to
bunch up and overlap. At this time this has all the characteristics of a top and one of two this can happen. One would be an obvious correction and the other would be a crash much deeper than all the experts are expecting. It would eventually crash right through the bottom trend line, like a hot knife going through butter.
The top trend line is far more important, as this is the earliest time we can see the market roll over and die or it would also have to go vertical to break through the top line again. We have about 200 points to go before this will no longer work as an ending diagonal and I will give it a few more days to see if it turns.
If this has all been a fake, then a complete retracement of this bullish phase will happen. The bull traders are all fat with profits so when the bears strike, be prepared to have some bull steak on the barbecue.
If this ends up being true, we may get a 3 wave, or a 5 wave down pattern. Which one we do get will not be a big issue at this time. In the end there should be another opportunity to catch an Elliott Wave Falling Knife.
The diagonal count is 5 waves up in Subminuette degree and all the degrees are used up before I have to dip into my custom lower degrees.
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