Yesterday, the market reached our short term w.(iv) target. I have relabeled my chart to represent the larger degree so that my wave labels will be consistent with the higher time frame labeling that I use. Nothing has changed regarding the subdivisions or any previous targets identified at the intraday, daily or weekly level.
At the 360 min chart level w.v of w.i circle is underway and appears to be very mature. I believe that downside potential is limited. I have shown the typical termination points for w.v. Ideally, I would like to see the lowest target reached that would complete w.i circle and set the stage for a countertrend rally to once again test the the lower boundary of the price channel. This area would represent the origin of a third of a third wave which, by nature, are the most violent and travel the farthest distance in the shortest amount of time.
From a technical perspective, the Market remains severely oversold and is due for a bounce. Look for that to occur as w.v completes. Although I didn't touch upon this in my Trading Lesson (Parts I and II) of How to use an Alternate Count, notice how the 20 - sma provided resistance for w.(iv) at 1295.5. I'll be looking for the same upon the next encounter.
Let's see what develops early on tomorrow and continue to work the larger expanded flat count.
Best of Trading
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