A continuation of yesterdays unfinished pattern followed up with an intensity today not seen for a while. Definitely a refreshing day for the Bears. Many EW'rs had the count as a 2nd wave up and the 3rd wave down beginning. But I still think this is a 5th wave ending the 1st or an A wave. Sometimes it is easier to let the pattern form slowly to get the whole subwave. Today we got that 5 wave pattern in a more symmetrical way. I believe we are done for now, but we could get a spike lower tomorrow to catch every bear to commit and rally for a short squeeze.
As noted, I have been looking for a divergence on a daily level and we got that today. Can we keep going? Yes of course, but we would need for certain time frames to reset for price to continue lower. Our trends have come back to being in sync. That said, because we are looking for a reset in stoch., we should look for the intra-day chart for the clue to see what happens to our short-term trend reaction.
Main-Trend: DOWN
Short-Term: DOWN
If our analysis is correct then we should look for a retracement back to the 1670-1650 range for a zigzag pattern to complete a corrective B wave pattern or 2nd wave.
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