Truncated 5th waves are when wave "5" fails to exceed the termination point of wave "3"
EDT's in a rising market are the most pattern. They are termination waves and quickly retrace to their point of origin, which in this case is SPX 1810.
Truncated 5th waves in a rising market signal weakness and a sharp decline coming.
The combination of a Truncated 5th wave on an EDT is a SUPER SIGNAL!
The SPX could decline to the mid-1700 area by late October or early November.
Thanks for the comment. Yes Truncated waves are the exception not the rule. And yes there are alternatives, a Horizontal Triangle is the best alternative count.
The SPX should drop a lot on 10/3/16 and probably close near the low of the day. If that doe not happen it would be a big clue that something else is going on.
Thanks for the comment and feed back as to what you have picked up on TV. Big market moves usually fool the majority.
Make a mental note about anything you read or hear about the stock market in the next two weeks. If there is a big move down
the knowledge of what the majority are saying will give great perspective for future moves in any market.