Earlier today, DJI pushed to a high that overlapped the previous low (see yellow rectangle). That overlap eliminates the rally as being wave 4 of a bearish impulse.
That overlap does not eliminate lower levels, but does restrict how the count can be made.
One possibility is that DJI is unloading in a wave 3 lower and today's rally was simply wave (ii) of 3. In that instance, wave (iii) of 3 would be a powerful move to the downside. For this count to remain alive, DJI would have to hop on its horse and start selling immediately as it is trading near the parallel channel.
Another possibility is bullish and suggests the correction wave simply an A-B-C zigzag pattern. This implies prices would eventually pop up to new all-time highs.
@peterdcharlebois, thx -- over 10 years of studying it will do that. I can teach you the nuances to shorten that time span if interested.
peterdcharlebois
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@JWagnerFXTrader, Well the reason I recognized your knowledge is I have been doing the same for about 15 years. But thanks for the offer. (I used to teach it too)