Elliott Wave Analysis of the Dow Jones Industrial Average DJIA by Sid from ElliottWavePredictions.com. Click on the chart twice to enlarge.

The internal wave structure of the move down in the DJIA from the July 7 high though the August 9 low can count as completed waves 1, 2, and 3 black, and more to the point, appears to have paused at the 4.236 extension of the distance the July 7 through July 18 wave 1 black traveled.  This is further evidence supporting the accuracy of this longer-term wave count, which labeled the March 6 2009 though July 7 2011 bull market as an impulse.

Also, I like this interpretation very much because it explains why both the up move from March 16 through May 2, as well as the down move from May 2 through June 15 look like “threes”.  Also worth noting is that, even though the July 7 high (labeled wave 5 burgundy) did not make a new high above the May 2 (highest) high, it did terminate well above the February 18 high (labeled wave 3 burgundy), therefore avoiding the rare “truncation” moniker. 

One last observation:  Within the last upward push from June 15 through July 7, although the wave 4 black is very short and brief, in my experience, this phenomenon is quite common.  Wave 4’s within the last “wave 5 push” at the very tail-end of trends are often so shallow and brief that an intraday chart is required for visibility.

Sid
http://elliottwavepre.wpengine.com