At the 240 min chart level I an hesitant to label w(ii) complete due to the fact that the market could not even reach the .382 retracement of w.(i).
Also from a time perspective, the minimum time relationship for a corrective sequence is .382. As you can see, the w.(ii) completion feel short of this requirement. As such, I'm going remain neutral until the emini SP and look for the following:
Bearish
The w.iv circle top has yet to be confirmed by a break of 1103. If w.(ii) is indeed complete, we should see a break of this level as well as a break of the lower boundary of the channel... confirming third wave price action. If both occur, then look for the levels stated in my weekend edition of Heard on the Street as potential targets for the termination of w.v circe.
Bullish
A print above today's high of 1146.5 would confirm my suspicion that w.(ii) wasn't complete and that a larger corrective structure was unfolding.
Best of Trading
The failure to penetrate 1111.25 and the lower boundary of the channel favors the bullish scenario.... yet early sideways price action may suggest that w triangle w.(b) develops before a final push higher to complete w.(ii).
ReplyDeleteAs in any corrective move, the enitre structure shuld be retraced once completed.