We have formed a triangle as I had previously suspected to form in this wave 4. Estimated target of end of wave 5 is around 15k.
I suspect that this is just the A wave of a much larger correction. I originally thought that the break from the ATH was simply ABC down but we extended down much further. Mind you this is the bearish case. There are some outlooks that are bullish that have the completion of an ABC at the prior local bottom but the formation of the triangle leads to me think that this is a move down incoming and not complete.
Time will tell.
I suspect that this is just the A wave of a much larger correction. I originally thought that the break from the ATH was simply ABC down but we extended down much further. Mind you this is the bearish case. There are some outlooks that are bullish that have the completion of an ABC at the prior local bottom but the formation of the triangle leads to me think that this is a move down incoming and not complete.
Time will tell.
Comment:
We overshot E a little bit. I had the .618 trend extension up but it tagged the .65 instead. Regardless the short trade is active.