Here is the chart of the September contract that I left readers with on Monday which includes price action through today's trade. In Monday evenings update I said that I was hesitant to label w.(ii) as complete due to the fact that enough time hadn't elaped, i.e. the wave was to short vs w. (i) and also because the depth of the retracement was too shallow to be a second wave.
I also stated that if w.(ii) was complete we should see an immediate decline that would break the lower boundary of the channel and take out w.(b).
As you can see, my analysis was correct in continuing to look for upside potential. Now, the question that remains is where it might end.
At the 60 minute daily session chart level, I can make case that w.(ii) is now complete... yet, it wouldn't surprise me if the open gap is filled before the larger degree trend resumes to the downside.
Therefore, I'll be looking for an initial five wave decline that breaks w.iv support. This should provide the first piece of evidence needed to confirm that w.(ii) has ended.
Should the market extend up in the ON session, I'll provide an updated chart as well as termination targets.
Best of Trading
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