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| Diagonal Option |
I forgot to post this updated chart. I had been tracking this count/move over the past few weeks. Bulls need to keep this in mind because when I first posted this, I cautioned that a much higher retrace should be expected. Well now that the 78% retracement target has been met, the bears do have something to work with here.
EOD Update
The market appears to have completed five waves up off the 7/24 low. However there is a strong case for just three waves up having completed as well. As the market pushed slightly higher today, it was rejected by the TL connecting the 4/2 - 5/1 highs.
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| 10 Min |
However, if the alternate count is that only three waves have completed, we should expect a shallow range sideways for a wave 4.
Either way, based on the squiggle above, we should be looking for a wave iii/c down next. iii/c=i/a at 1375.
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| Bear |
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| Bull |
