Counting the “squiggles” is more of a practice exercise than it is a guide for trading. I never put too much stake in wave counts on 1 and 5 minute charts, but they often do shed light on the overall count. I’m sticking with the Leading Diagonal count to end Minor 1 for now, though there is a much more bearish count that puts the market in Minor 3. I’d switch to the alternate count if RSI on the Daily SPX chart makes a new low, which is typical of 3rd waves. [Elliot Wave Notation]
SPX 5-Minute | Leading Diagonal Count
SPX Daily | with RSI, MACD, Stochastics, & NYSE Breadth Measures
I like the Leading Diagonal Count because it allows the market to form a Head and Shoulders neckline that slants downwards, as opposed to flat or slightly upwards. The steeper the angle of the neckline, the more bearish the pattern becomes. A bearish slanting neckline seems appropriate for Primary 3 down.
