The Right Count

In my previous post on June 2, I mentioned about the current wave 5 (for most of the Asian Bourses and Dow) if its length is longer than 3, it is going to be very very bullish. The reason is, based on Elliott Wave Principles, wave 3 can never be shorter than wave 1 and wave 5. The wave count on the left is wrong the moment wave 5 is longer than wave 3. Under that circumstances I will have to change my wave count from 1-2-3-4-5 to 1-a-b-c-2-3 as shown on the right and wave 5's magnitude will be either same as that of wave 1 or 1.618 times of wave 1.

At this moment it is better to be conservative and it is better to assume that the wave form is 1-2-3-4-5 as shown by the figure on the left until such time when the wave 5 is longer than wave 3. The "wrong count" and "right count" as shown refered to condition when wave 5 is longer than wave 3.