Chopping Around - Market Analysis for Oct 6th, 2016
If I have to maintain the current "primary" count of an ending diagonal to the downside, even if we see a completed 5 up in the move today, it can still be part of the b-wave of the wave 3 down. But, as I have noted before, diagonals are not exactly the most reliable patterns to trade, so, one should not be attempting to be aggressive in this region, imho.
For us to see a bigger move higher in the alt-b wave count, then we should complete this 5 waves up, followed by a corrective pullback, and take out of the high of this 5 waves up, which will then have us targeting the 2180-2190SPX region.