Thanks for the question. These can be a little tricky. Print spacing has to be ignored in a situation like this. It's important to look at the surrounding text to get an idea of what is actually being conveyed. Is the ellipsis showing an incomplete sentence or not? You are on the right track. The capitalized word He tells us a new sentence is beginning, but we need to look just a little further. The following sentence tells us he counted to seven. That is where we find the answer. Since we know that he counted to seven, it's obvious that (One, two, three) is incomplete, so we would treat this as an incomplete sentence brailling the ellipsis first and the period last.