On a short term basis, the overnight session does not appear to be subdividing further to the downside which means that wave i circle is complete. Attached is a 30 minute chart which shows the subdivisions of wave (v) of i (circle, green). Note the divergence between waves iii and v. Divergences between price and indicator(s) often occur at the termination points of impulsive waves. Falling prices, while the MACD was turning up signified that the trend down was coming to an end. As I mentioned in last nights post, I'm looking for selling pressure to resume after testing the 1150 area. Let's take a closer look to identify other clusters of resistance There is swing resistance (green lines) at 1044 which is being tested at the time of this post and 1047.25. Additional resistance can be found by using the Fibonacci reverse extension tool. A 1.382 extension is 1049.25. So look for sell signal (a completed ABC) between 1044-1049.25. Rallies above this area would suggest that a larger countertrend rally was unfolding.
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