During in impulse up, the 3rd wave can itself be divided into 5 waves — and the 4th wave within that 3rd wave can provide the support zone for the next 4th wave of larger degree.
This is called a retest of the Wave 4 Support
Given that we already experienced an impulse 3rd-wave up — if we then experience the following:
A top followed by a retest of 4th wave support
…then, that could be just the A wave of an A-B-C 4th wave retesting into that support zone.
In this example, we have an extended 3rd wave with 4th support in the 2082-2088 region.
Notice how when we finish the wave 3 up on May 29 and then proceed with the first portion of the 4th wave (wave a) towards the wave 4 support in the 2082-2088 region (2086 was the actual bottom of a).
What follows next is what appears to be a 1-2-1-2-3 setup — but that failed 3rd wave becomes the top of the B wave — and then we turn back down to retest support in the C-wave of 4 once again as we did on June 1.
Once this C-wave completes, we are likely then beginning the 5th wave up — which itself could subdivide into a big wave 1 up — followed by an a-b-c wave 2 back down to 2086 for one last time before making new highs.
This is historically what happened in June 2016:
Real-Life Examples of the Corrective A-B-C Wave 4’s:
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