Friday, October 1, 2010
Remember this post? It didn't fail in indicating this large move on the EUR/USD. At the time, a nice positive divergence developed and a structure that looked like 5 waves up.
What happens when you see 5 waves up? You expect three waves down which is then followed by 5 waves up. That three wave pullback retraced the initial impulse up by 50%, a very typical wave 2/b pullback.
So far, I think this current impulse is in a very extended wave 3 of 3 or C so the move up is not complete yet. I think wave 3 or C will most likely hit 1.40 wave equality with 1 or A.
No time right now but will get a SPX EOD update out later. Cheers!