Since December 2018 where we bottomed at 3122 and topped at 4236 we've been on a complex corrective structure, which leads me to conclude we're in a B wave formation with a possible C Wave in the works. Here's why:
WXY Pattern to retest December 2018 lows
Correction to retest the highs at 42K.
A possible formation (a ).
A wave height extending 1.618 from a B wave ending at 1.272 Fib extension from our recent top at 4190.
Sideways Action to test SMAs:
After the impulsive drop on Feb 18th, 2019 we're pushing upwards to test the 20W and break through the weekly SAR points along the way (which we haven't done since July 2018). Expect a rejection to retest the 200 (which converges with the ascending of the and the 1.272 Fib extension from our most recent top at 4190).
A bounce off the 200W , a break above the 20W (which we haven't done since July of 2018) and a push above the will confirm this corrective pattern and will catch price up to the 50W . Expect a massive rejection there.
A break below the 200W and the December 2018 lows will invalidate the formation and the corrective pattern.
Thanks for reading. Good luck trading.