Thursday’s trade cleared up some details for me, but also brought into clarity the degree change I’ve made to the Elliott count. I’m working on a new e-book – You Are Your Own Guru – where I look to detail R.N. Elliott’s original “The Wave Principle.” In doing some research using Elliott’s original writings I found his count breakdown that was written in 1936. Using the DJIA he labelled the rally from 1858 to 1929 as Grand Supercycle Wave I. I had been counting that high as Supercycle Wave I. Just a degree change I thought — no big deal – until I applied it to the ES and NQ. Both markets are now updated with an increase in the degree from Cycle to Supercycle. The advance is still in progress and instead of completing a Primary wave 3rd wave in the ES it is now a Cycle degree wave three. It does fit better and actually gives additional upside room that the market does seem to be telling us are its intentions. So today’s analysis reflects the degree change and labelling change within the Primary wave 5 advance which looks to have completed Intermediate wave 3 with an Intermediate 4th wave correction complete or nearly so. This suggests then that there is still an entire Intermediate 5th wave advance coming with a move above 4400 and 4500 nearly certain.
July 15, 2021