Good Morning.
Often, when the market throws us a curve ball and forces us to re-evaluate our wave count, I like to remove all labeling from my chart and focus on waves in isolation rather than as a whole. In doing so I can still find high probability trade setups and let the market resolve the count for me as more price data is filled in on the charts from the right. Let's take a look.
Let's focus on the price action from yesterday's tradeable top (1044.5) on the 30 minute chart. The over night session produced something very interesting. Five waves down! My point is... we don't have to worry about the subdivision labeling from the high of 1127.5. According to the wave principle, we know that 5 waves is followed by a 3 wave structure. Therefore, short sellers should be looking for the termination of a three wave structure either in the pre-market or in the regular session to posture ourselves short for another move down.
Best of Trading!
Good Morning.
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