Today's session was certainly exciting. Prices gaped up at the open and remained strong for the first hour of trade, then the market sold off before staging a comeback. Unfortunately, nothing has changed from the mid day review. Either wave (iv) has completed and the current move down is wave i of wave (v) of wave i (circle) or wave ii (circle) is still unfolding. Given the proportion of the decline from wave 2 blue, I don't think that today's market action completed a small wave ii (circle). Therefore, while the wave labeling is unresolved, I am anticipating a continuation of today's rally. The depth of that rally will determine which labeling is correct. If prices have a minor bounce to wave ii (blue) then I would think that the operative wave count is that as depicted in the chart whereas we are working a fifth wave down to complete wave i (circle). If you recall wave ii can't exceed the origin of wave i according to Elliott rules, therefore should price breach 1038.5, then the operative count would indicate that wave ii (circle) was unfolding.
I think
tomorrow will provide a good short trade opportunity with stops just above 1038.5 if the current wave up unfolds in only 3 waves.
Finally, I will be at a seminar tomorrow so there will not be any posts until the end of market review.
Best of Trading
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