In last nights edition of the Market Pulse, I left readers with this chart. As I mentioned the wave structure and depth of the rally was bothersome, yet I decided to stick with the count as it appears on the chart.
While I felt that 1166 - 68 was a high probability level for the terminus of w.iv, given that most corrections don't exceed the 1.618 of w.a of the structure and that the count would be invalidated with a print above 1185... the w.i low (red dashed line).
During today's session price not only exceeded the cited fib levels, but almost hit the .786 retracement of 1191.75. This puts pressure on the count to perform to the downside tomorrow in a big way or it is appropriate to discuss some of the alternate counts so that we can be prepared for any further upside potential.
First, the wave pattern from the w.3 low is clearly sideways and NOT impulsive. I have a great deal of confidence that what we are witnessing is just a correction and .... when complete, will be fully retraced.
Since there is a great deal of noise on at the 240 minute chart, I referred back to my daily chart and noticed that I could also make a case for the following two counts:
A flat w.4 or w.(2).
Each would allow for a w.c =w.a @1239.5.
Let's see what develops tomorrow. Expect further commentary on these alternatives as well as a recap of what transpired in tomorrow's edition of the Market Pulse.
No comments:
Post a Comment