kenl - $SPX chart. For this to be a triangle wave [IV] off the 2000 top there are only so many ways it could do it. I don't think there is any way to deny that from 2000 high this a correction in a bull market.
Here is a discription of the three contracting and one diverging triangles that can occur as the fourth wave in a bull market.
1. The top B,D line moving down with a horizontal A,C,E line. This is a descending triangle. (Top declining, Bottom flat)
2. The top B,D line horizontal with the A,C,E line moving up.
This is an ascending triangle. (Top flat, Bottom rising)
3. The top B,D line moving down and the bottom A,C,E line moving up. This is a symmetrical triangle. (Top declining, Bottom rising)
4. The top B,D line moving up and the bottom A,C,E line moving down. This is a reverse symmetrical triangle. (Top rising, Bottom declining) Very Rare.
In my opinion none of these fit the situation. In your count you have a declining top and a declining bottom. If you note the above descriptions there is only one that has a declining bottom line and that is a very rare pattern. It also requires a rising top line.
In all four triangles the sub wave count is 3-3-3-3-3.
Tell me if I am missing something or you see another possibility.
