Trying to keep this simple. Though today's action did not make things decisively clear, we did rule out one of the three options I proposed yesterday, Option 1. The minuette (v) ED should be ruled out.
At this point, I say we are either working on minute [ii] or one more 1-2 structure.
Things to consider for the nested 1-2 counts:
1. Price closed today within the blue upper trend channel drawn from minuettes (ii) and (iv) and therefore maintaining the channel.
2. Price closed below the purple trendline (8/17, 9/2 and 10/2 lows) on a backtest.
3. Price tagged the 23.6% retracement from the 1101 - 1029 range.
4. Weekly MACD is getting very close to a cross
5. If price breaks below 1020, the nested 1-2s become the preferred count
Things to consider for the minute [ii] count:
1. I'll be watching to see if it breaks the trendlines mentioned in 1 and 2 above.
2. If price takes out 1052.81, minute [ii] is most likely in progress
Whether we are in minute [ii] or continuing to build on the 1-2s, I have a feeling that a decisive move lower is in our near future. But that's just a hunch. We will see...
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