Why would your wave 5 not be lower than wave 3? That's not a traditional 5 wave pattern.
rmmartin
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@Kwa, Thanks for the very good question. My thinking is based on a strong battle between bulls and bears in this region, which will cause a truncated 5th wave. Also, if the 5th wave does extend below the major support line of 5500 then we would have a technical breakout that would reverse the bullish move. We very well could see a huge pinbar pushup from below the 3rd wave, but I would look to buy at the region indicated only after a pullback and bullish signal. Also, there is an H&S pattern implied as well, with rising support pushing the base up into a wedge. Otherwise, Yes the 5th wave should be lower but no longer in this case...as I'm looking for a special bounce. Hope this helps :)