US stocks entering the third wave? After this, will there be a rise to the 5th wave after a pullback?

Dow Jones Industrial Average 10-Year Chart

(The chart is modified from SB I Securities' website)

In technical analysis, with Elliott Wave, there is a rumor that the U.S. stock market is now in the third wave.

Elliott Wave is the idea that the market moves in a pattern of an upward five-wave impulse (up 3 waves, down 2 waves) and a downward three-wave correction (down 2 waves, up 1 wave).

And now, according to that Elliott Wave framework, the talk is that we are in the third wave.

There was a brief downturn around period ①, and before ① the third wave seemed to have ended, so ① might be the fourth wave. However, a characteristic of the third wave is that it tends to be the longest, which creates a sense that ① might not be the fourth wave.

Additionally, since the fifth wave is said to be shorter than the third wave, the possibility increases that what follows ① will not be the fifth wave.

It seems appropriate to think that ① is in the middle of the third wave.

If we are now in the third wave, a corrective wave of the fourth wave could be expected afterward.

And after the fourth wave, a rising fifth wave is anticipated.

In other words, when the next downturn comes, it is possible to plan a strategy to target the rise of the fifth wave afterward.

Elliott Wave analysis can be interpreted in many ways by different people, and it is often difficult to make precise forecasts, so caution is required when using it.