The rise above 7510 last week violated my idea from Sept 7th! I still believe that wave (5) olive represents the top of a very long ending diagonal from 2009 and the current decline is the early stages of much larger correction. Diagonals usually occur at the end of an impulse wave or the beginning and represent uncertainty in the market, hence the overlapping waves. This new idea if correct places FTSE in wave (4) black of a leading diagonal and wave (4) black has already strayed into wave (2) black territory which is a condition of diagonals. Corrective waves in diagonals usually retrace between 61 & 91% of the prior wave and it is likely that FTSE will probably move to around the 7600-7630 area before wave (5) black begins and draws FTSE to around 7089. Good Luck
Your 123 down should actually be labelled WXY which has a sub-wave count of 3-3-3. The entire corrective pattern looks like a WXYXZ
Geofftv1
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@mujie, I disagree with your thoughts on this as I believe the entire structure from the top is an impulse
Wave leading diagonal and not a corrective wave structure. Time will tell.