The market rallied to 1039.47 today before selling down and closing lower for the day. As discussed earlier today, an ending diagonal [v] wave is the most likely formation that is unfolding. This implies wave C of (Y) of [2] is not over but will be soon, probably before Labor Day.
Expect wave (iii) of [v] to carry into the low 1040s early next week. After that point, a good estimate can be found for the completion of the rally but it will probably be in the 1050 area.
Problems:
Wave w of (iii) is very shallow and double zigzags are more rare than single zigzags. Wave y will need to rally considerably unless a rare triple zigzag is unfolding. Perhaps (ii) has not completed and needs to be relabeled.
(ii) is not clear but does not look like a 5.
Those expanding leading diagonals may not be correct, they are very rare.
Alternatives:
Some are shown on the chart.
Perhaps wave [i] unfolding, not wave [v].
Wave [i] topped and this is wave [ii]. That or wave [v] topped. Not likely, the labeled (ii) wave does not look like a 5.
There is no ending diagonal, wave (i) was an impulse. It looks like 7 waves though.
There is a larger correction still unfolding, perhaps [iv] has not completed. That would be a very wide correction however.
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