We use the WBQ as a proxy for the Swedish stock index (simple because we could not find a good chart of the OMX). The nice thing about EW is that there are only a handful of individual patterns, so even if you have no idea where you are in a sequence you still have a good chance of calling the next move correctly. What we have here is a classic example of a “diagonal” which is a wedge in plain English. Unlike most impulsive E-waves this pattern consists of a 3-3-3-3-3 structure, no 5’s at all. Another exception is that overlap between waves 4 and 2 is common whereas elsewhere it is an absolute no no. Otherwise wave 3 cannot be the shortest. With eight points at the top line and 5 at the bottom this is a classic specimen. Sometimes these structures seem to go on forever but in this case there is not much time left and we already have a clear break of the bottom line. If our analysis is correct the target, as a minimum, should be the base of the structure, that is 21.42 or down another 37.5% This should happen rather violently and could be done in about a year. The CAC and quite a few other indexes sport the same pattern.