Adjusting To A Diagonal

I think ES got past small degree resistance that makes an impulse down very unlikely now. NQ has not bounced as much relative to ES, but it also did not get as low viz Fibs inside the "circle iii". This makes them have quite different potential subwave counts right now.

So far we clearly only have 3 down off the July high. If that is an (a)-(b)-(c) for an alt wave circle iv of C allowing for an attempt at OMH in (B) then I strongly think that low MUST hold. I am not showing a path for that for a few reasons. I do not see it as a high probability count. The risk skew is terrible. Specific extension targets for that potential fifth are not reliable since it could complete with merely a nominal higher high or truncate. So much of what I see argues for the (B) wave top in place. I also do not like to crowd my charts with alts and other analysts are showing that. Do you mean that you should be full leveraged short if price is clearly getting over cited resistance levels? Absolutely not. I don't think anyone should ever be full leveraged short. We continue to post both bullish and bearish Wave Setups in Stock Waves. And we continue to update those setups as BOTH reach their next waypoints in the projected EW paths (though recently certainly the shorts have been getting far more updates). There are opportunities to play for #Rotation and to diversify and account for multiple scenarios. I merely urge ⚠️and #Prudence.

So if this is still part of wave 1 of (C) down unfolding then it is best counted as part of a diagonal. It is not yet clear though if that is a Leading Diagonal for wave 1 in an otherwise impulsive (C) down OR if it is the start of an Ending Diagonal for the entire (C)-wave. When we examine different sectors and individual stocks in #StockWaves we see charts that lean both ways (as well as many that are clearly much further along inside a (C) wave down or worse like XRT we have warned about).

The three primary camps though for this still being part of wave 1 of (C) are:

1) Circle i-ii-iii and now in circle iv of an LD. ES/spx fits best with this since it reached reliable Fibs for all of circle iii in an LD. (SMH & RSP fit this too)

2) Only the (b) wave inside circle iii. NQ leans more to this since it did not even reach the 100% Fib for circle iii. Additionally if NQ is (a)-(b)-(c) down for a similar alt circle iv that (c) does not reliably count complete. (Also XLY & XLK)

3) This was (a)-(b)-(c) down but not as circle iv... as the circle a inside an abc for wave 1 of an ED for the (C).

Interestingly RTY can still just easily count as an impulse for 1 where this is merely the (iv) of circle iii still or the circle iv. And RSP can as well.