Let me add one thought to further explain just how unpredictable it is here. In the last post, I said that “if we fail to get the big rally, I would begin to suspect that the 5th…wave is itself the ending diagonal, indicating that we may have one more lower low to make.” Why wouldn’t I be certain? I want to be clear about that. If we fail to rally, it won’t automatically also mean that we have to break to new lows, because there are many alternatives, which makes this spot very difficult.
For instance, it’s also simply possible that orange “2” is just very large, like this:
So, in other words, failing to break out right away won’t—to my mind—automatically also mean that we’re going to plunge to 3700, either. It’s possible that we do, but it’s certainly not a given.
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