@hehe ... on your chart ... wave 2 overlaps wave 1 ... according to axioms that cant happen. also look carefully at sub wave counts .. for eg in your wave 1, you have a clear 3 wave subcount which cant happen (needs to be 5)
@trader wgun .. wave 1 CAN BE the longest .. you are right that elliot said USUALLY it is 3, otherwise often 5 (seems to play out in commodities this way more often) .. but no reason 1 cannot be the longest ie an extension. b CAN close below a .... its called an EXPANDED FLAT by ELLIOT.
i should be charging you for all these lessons ... im too nice though ;)
i think reason for stregnth was better economic data & beginning of tapering talk to guide market as to intentions ... but markets dont look strong enough to weather tapering yet... so benanke and co have backpeddled in terms of rhetoric .... i think the only way this can work well is if economic data is genuinely improving and they gently start tapering ... then we could see US equity hold up while dollar rallies ... this market is getting very complicated to interpret ..