S&P Elliott Correction Wave

there is definitely a potential to the upside, but this means that the trade deal should get fixed to the point that both china and us admit to it not just trump saying it.
Also, US is moving to make a law that China will be very angry about:
"The Hong Kong Human Rights and Democracy Act, which will now move to the Senate before it can become law, has drawn rare bipartisan support in a polarized Congress"

which reinforces that notion that the trade war is no were close to be resolved.
the Fed is also just talking about "skipping" the next interest rate cut.
We did have a up trend due to the percieved Trade deal,
There is no deal at all, just talk of it. but next time around people will not be believing trump so readily.

so there is a potential for the upside but there is more or equal potential for down side too.
which makes it more tricky

@mansofun, Thank you for your comments. I agree with you on the trade deal issue. The smoke and mirrors coming out of the Whitehouse won't last long if real signs of progress aren't forthcoming. I find it interesting that we are in negotiations with them and expect things to go smoothly when we are condemning them for Human Rights violations. I'm not suggesting that the condemnation isn't justified, just that we " can't have our cake and eat it too " so to speak.

wave 4 cannot enter wave 1 territory

@Rag2riches, Technically it can if it's an ending diagonal pattern or a leading diagonal pattern.

@VelvetHammersTrading, yes you are right but its not the case here

@Rag2riches, yes, I believe you are correct