Cycle : wave 2 Primary : wave A(In case of zigzag correction) or wave B(In case of Flat correction) Intermediate : wave 4(In case of zigzag correction) or wave A(In case of Flat correction)
Primary 5 has taken a form of an ending diagonal with an truncated 5th intermediate wave.This is followed by 2-4 trendline and wave 4 low breach in a shorter duration then wave 5 took to form giving two stage confirmation of trend reversal.
Possibilities of the form of current correction
1)Zigzag
Generally wave 2's are zigzag,not necessarily but in general,if that's the case then Intermediate count would be 4 and price should not touch 517 level as per this chart and should make new lower low for intermediate wave 5 of primary A which would then be followed by wave B bounce followed by wave C decline to complete 5-3-5 zigzag structure.
2)Flat
If price touches 517 as per this char,then rule of impulse would be violated meaning correction will be a Flat one with 3-3-5 structure of which primary A is done @ 428 and primary B is in progress.Now where this B will terminate cannot be known but depending upon it will be the form of the flat correction will be decided upon which we can calculate target for wave C to complete cycle wave 2(considering correction not being an complex one).
Irrespective of either form of correction that we are in wave C is yet to come for both form of correction (Zigzag/Flat) hence as per this count longs previously held should be covered in this current bounce once we get a close below previous day low.
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but one thing I don't agree is in ending diagonal wave 4 must enter in price territory of wave 1.. which is not applicable here
UNDERDOG-29
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@akrock861, yes,but i labelled it because internal structure is 3-3-3-3-3,it looked like a mixture of truncated impulse and Ending diagonal and so i labelled it as shown.If you have to apply diagonal's rule of wave 4 entering wave 1 zone then we might be in wave 4 right now of which lower degree wave c is going on of which wave 4 of lower degree is going on.Further from here as per this count wave 5 would make a lower low and complete 3-3-5 Flat structure which should be followed by wave 5 advance.