Can trend channels provide us with a clue?
Price broke below the center line and has backtested it without successfully breaking above. This, along with a price retracement to the 38.2% level may signify the end of Minor wave A with Minor wave B in progress.
960 looks like a good level for a pullback to complete Minor wave B. This would respect the lower trend line and make for a 38.2% retracement. Though a 38.2% retracement would be shallow, it would make sense given the strength of the market (dip buyers at the ready) as of late.
Where will it all end? Once again the trend lines may provide a clue along with the retracement levels from the Oct 07 - Mar 09 decline.
On Tues 8/11 I posted on this same topic: http://waveprinciple.blogspot.com/2009/08/price-projection.html.
Nothing has changed other than what the count may be once price falls to this level. What that count may appear to be is possibly Minuette wave iii. If this occurs, this would make sense as part of a 5 wave structure to form Minute wave C to complete Minor B right near the lower trend line of the channel.
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