Last nights uncertainty has just become clearer. First, our bearish level of 1170.25 has been broken to the downside and w.v circle may be underway. Our first clue that the interpretation is correct is the development of a small five wave decline that I can count from 1206.75 - 1181.5. My expectation is for three waves to complete at 1151.75, followed by another up down sequence and a break of the lower boundary of the corrective price channel. Prints below 1103, would be a final confirmation that w.iv had ended and traders have a short-term tradeable top to lean against. I'll be watching for the market to commit these things to me before I commit to it.
While constructive as this price action is early on, we can't forget that this move to the downside could be just w.b of a larger corrective structure that would resolve to the upside ..... fulfilling 1225-30 key levels. Even so, at a minimum, we should see three waves down even if the count doesn't get confirmed by a print below 1103.
Best of Trading
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