The large rally today has been labeled above as wave [A] of iii of ending diagonal wave (v). This was the count presented in Friday's update and the alternate count presented in yesterday's update. If the view is correct, a top will be reached days from now in the 1160s or low 1170s.
Wave iii will be longer than wave i beyond 1166. It does not seem to be a rule that 3rd waves of ending diagonals must be shorter than their 1st wave counterparts, however it is a guideline to be taken very seriously.
Given the choppy action recently, a sort of upward drift in the short term, an ending diagonal completing at this late stage of the rally since 8/31 is a high probability. This is particularity true given the 9/24-27 structure (the first two days of (v)). In addition, there was a strong move today resembling a 3rd wave in size and breadth, but there was only a nominal new high. The Dow 30 only exceeded Thursday's level by about 15 points late in trading.
A new labeling for wave (Z) of [2] is illustrated above. Although not visible at this scale, B is now labeled as a flat + zigzag double with [x] a flat. This blog's archives can be used to better see this idea.
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