Because of the fractal nature of Elliott Waves, we can say that the double zigzag pattern shown recently on the weekly chart (see January 28 post) is itself one complete wave of an even larger pattern. What is that pattern? It can be *slowly* pieced together over time using the logic of the wave principle.
To start, we know that the completed double zigzag is a corrective pattern. Within which larger waves can corrective patterns occur?
Impulses (Trending, Extended, Truncated) and Leading Diagonal: only in waves 2 and 4.
Zigzag: only in wave b.
Double Zigzag: only in waves b and x.
Flat and Expanded Flat: only in waves a and b.
Triangles (both Expanding and Contracting): waves a, b, c, d, e.
Double and Triple Three: only waves a, b, and x.
The preceding means that the move up from March can be any wave except 1, 3, or 5. That is, it may be wave a, b, c, d, e, x, 2, or 4 of a larger pattern. Over the coming days I will point out the waves (as I see them) on the daily chart. We’ll also apply the Tom DeMark objective wave counting rules.
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