Deeper retracement is not cancelled yet

Morning folks,

So, market has changed the shape a bit and we haven't got the butterfly that we've discussed last time, but it doesn't mean that deeper retracement will not happen. In fact, we have bearish reversal bar on weekly chart and, as a rule - they have continuation. That's why despite that market forms upside AB-CD instead of butterfly, but 2nd leg down could start from 59K resistance area. Besides, now we have "222" Sell pattern.

If we get bearish grabber today on daily chart as well - we could get necessary context for another drop. It means that bears should keep an eye on reversal patterns around 59K area today and avoid any fast upward breakouts. If everything goes smooth and market forms bearish pattern on top - it is possible to try to go short here. In a case of strong upward action above 5/8 resistance - do not go short, as it means that no 2nd downside leg happens.

Conversely, bulls should wait for either strong upward breakout or, have no choice but wait when big daily downside AB=CD pattern will be completed.