The ending diagonal expanding triangle would count as this:
Oct 10, 2012
Elliott Wave Update ~ 10 October 2012
We've laid out the larger counts. DJIA would probably count best as a double primary zigzag. Triple negative weekly divergence shows loss of momentum:
We still like the wedge count also as shown on the SPX below. If this is a bearish rising wedge, a collapse in prices should occur. That is the outcome of ending diagonal triangles.
Local candle action shows prices again trying to hold 1430 support and now well below the upper wedgeline again. Yet we still need a solid "lower low" to make the bear case stand out.
One can argue that wave 5 was truncated in a very sneaky expanding diagonal triangle. If this is true, it displays weakness in the wave pattern. Hence the fairly quick and steady drop in prices so far from the recent 1370 high.
