As posted previously the futures sport a clear 3 waves up completed of Minuette1. The cash indices traced a clear 5-wave up yesterday off of the low then went to a new low. This is the first time in a year that I count a new low as wave 2, but that's how I reconcile the cash and futures markets.
Since wave S4 is clearly a rectangle and will resolve upward, it will terminate the 5-wave structure and THEN give a tradeable correction. At the same time this final move will confirm the rally (hitting 9940 and above) and give the green light for longer holding period.
Steve how big of a correction are you looking for and from what level?
ReplyDeleteFrom 9940 down to 9850
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