The last time I spoke to readers, the following chart showed my operative and alternative wave counts. At the conclusion of today's trade, I can eliminate the alternative wave count as price advanced beyond the 1.618 RF of wave b circle.
That being said, the strength of today's move was a bit of a surprise, as price exceeded my upside target of
1323.75 - 1325.5 and advanced to 1329 before making a minor three wave decline. The next area of resistance above the is 1332.25. You should note that I have made some changes to the wave count for w.ii circle based upon today's price action. I've labeled the advance as a double three where w.(y) of w.ii circle may have terminated today and if so we should see an immediate decline in five waves if this count is correct.
Notice the Detrend Osc. has a established trendline and diverged as price made new highs. This suggests that the rally is very mature in it's structure or it had already completed it's advance.
If w.ii circle has been struck, then the osc. should fall. Should it push higher and test the trendline during the ON session or tomorrow's trade, price should move higher to where w.(y) = w.(w) at 1337.25. If this scenario prevails, then the rules of EWP apply, in that w.ii circle can't carry beyond the origin of w.i circle if the wave count is correct. Therefore, I'm setting critical resistance at 1343. A print above 1343 negates either wave interpretation.
I hope you found this information helpful.
Best of Trading
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