Today's positive Non Farm Payroll data has lead to the following price movement. My labeling shows how I am viewing the move.
Price has reached the 1.618 extension that is typically the limit for any corrective move UNLESS a complex correction develops. I have no way of determining this at this juncture. If a simple a-b-c took place, then we should not see a new high and the move will be fully retraced.
Conversely, we must be aware that the market is severely oversold, that I can identify divergence and that a larger rally should be in order that moves prices much higher than current levels.
Note : A break of 1202 confirms a corrective wave interpretation ... not the resumption of the bull trend.
Best of Trading
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