Quote from ScalperJoe: Just so I understand this correctly, as this is very interesting regarding the wave count, if the futures (/ES) breached but SPX did not, which takes precedence in accurately counting the waves?
ScalperJoe - Very good point! That is a very good question indeed! We trade wave, which is following some natual law, so we want to trade something that has good liquidity and good volume. The more people participate the market, the more accurate we can get from counting the wave. It is a dilemma whether we should or should not count the wave of after hour's futures market. The after hour's trading is much easier to be manipulated. What I do is to have a 2-way consideration: I count both SPX and futures index. Today's market is an example that the after hour trading penetrated 04/23's low, but in the regular hour the market tried many time without being able to breach that key support. Now I guess that we have two possible counts:
1. ABC has completed the wave [IV], so the market is heading north for [V].
2. Or the market is heading down in a massive wave-III collapse.
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