I stared and stared at my charts Thursday night trying to determine exactly what that formation is, and never reached a fully satisfying conclusion. Is it a flat? Possibly. Except the C leg isn't a clear 5. Is it a triangle? Definitely not. Is it a zig-zag? Possibly a triple zig-zag, but it's not very clean. So maybe it's something entirely new. I decided to name it a "WTF". Stands for "Wiggle Thy Finger" or "Whip The Fool" or something like that (this is a G rated site) - you get the idea.
Just kidding.
Turns out that the buy signal of Jun 25 on Al's Indicator may be a very good one after all. I viewed it with a fair amount of skepticism at the time. But since then the moves up have been impulsive and moves down have been corrective. So it looks like the IT correction from the May 22 top ended at the Jun 24 lows. If so, the current count on both the bullish and bearish alternates puts the ES/SPX in a 5th wave with a target in the low 1700's at a minimum.
It should be noted that the rally from the Jun 24 lows may be an "X' wave preceding a third and final zig-zag into new lows for Minor W4, but this possibility seems unlikely. It will definitely be ruled out if the ES trades above the Jun 19 "X" wave high of 1649.00.
