Anyhow, the question now is - where do we go from here. Well, we should go up quite a bit in my opinion. Even though the vicious decline from today looks like only 1 wave (the a of the a-b-c), it already retraced more than 61,8%.. which means the b up from this a-b-c should move quite a bit in order for the c down not to violate the low of 1/A.
So in my view there are 2 options now:
- the a down completed today and we started the b bounce... that should go at least 100 points upwards before down movement resumes.
- the a-b-c down and 2/B is complete and we'll take out the highs. This option is less likely since the decline looks like only 1 impulsive wave. But it is worth keeping in mind if the current bounce becomes impulsive.
Good luck out there!