One Last Note for the Day

Earlier I discussed some ways we can compare the various counts on the US indices. I want to add one thought to that. In those counts, on the S&P 500, I placed the minor (green) 1 just above its recent high from 5/30 because the only requirement for the top of that wave is that it takes out the prior high. That’s the minimum requirement.

However, I am also cognizant that if (big if until we actually see some strong rallying) the Nasdaq is in its 3rd minor wave, it should be a doozy. And so, it’s important to note that the S&P may not immediately pullback for its minor (green) 2 as I depicted it in the last article.

Since minute (blue) 3 (on the S&P) is already longer than blue 1, the 5th minute wave may extend as long as it needs to.

And, so, it’s also possible that we see something like this:

ES

In other words, if the Nasdaq starts rallying in a big 3rd wave, that can obviously have a strong impact on the course of the S&P 500. And so it’s possible that while the Nasdaq 100 rallies to its 3rd minor (green) wave, the S&P has an extended 5th of its minor (green) 1. And then, when the Nasdaq consolidates in its 4th minor (green) wave, that’s when we see minor (green) 2 on the S&P.

My main point in the last article was to say: the indices are probably not on the same count (they are usually not, as any long-term chart will easily show), and using that should help us later by informing us about the order in which they should top out.


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