The Market continues to rally to the upside against the decline from 1343.25 - 1243.25. From 1243.25, there are several waves that overlap giving the appearance of a countertrend move.... a W-X-Y double zig-zag. For tomorrow, I'm looking for a further price advance to 1304.50 -1305 where w.c of w.y =w.a. Also note that the lower end of the gap will act as structural resistance. Should the market push through these key areas, then the next zone of resistance is where w.y = w.w at 1312.5.
Failure to penetrate 1296.50 would call into question the immediate wave interpretation and open the door for a retest of 1279 possibly lower to 1268-1270.75.
Since the jury is still out on whether the decline from 1343.25 - 1243.25 is just a correction, I'm focusing only on the current wave structure. Depending on your view of the market, one could also argue that the rally form 1243.25 is a leading diagonal. Regardless of which view is correct, the outlook for the market once the rally completes is still to the downside. The only difference is by how much.
Tomorrow will bring with it another piece of the puzzle. Let's see what develops.
Best of Trading
No comments:
Post a Comment