Earlier this AM I presented a chart offering to route plans. Below is the updated result and it appears that the market followed the blue one nearly to a T.
So after retracing nearly 62% the market found resistance along the trendline (which I forgot to present on the chart) drawn using 7/7 and 7/13 highs.
Below is the cleaned up version of the chart. The move off the 7/7 high still appears to be corrective and I believe is nearly complete if not already complete.
So where do we go from here? Below is a chart (originally posted on Strategydesk) highlighting the next route options.
The wave structure still counts corrective and appears to be wedging and I believe it just about completed itself today. So what comes next? The options:
1. Start wave 5 of Minor 5 up - Blue Labels
2. Wave 4 blue is a falling wedge and requires a bounce for wave 4 (really wave d) of the wedge
3. Start of a wave Y up
4. Complete wave 5 (which would be a small ED) of a larger degree wave 1/A down.
I'll be watching that blue upper TL for signs of a breakout or rejection.
Daily Bollinger Bands
The market bounced right at the 20 day SMA but lost the 50 day once again.
