So, for now, let's see if the 0,618 projection holds (confluence with the of Minuette wave w, with the support in the 4 hour time frame, and with a strong ), or if price keeps going down and then holds at the 100% projection, completing a measured move.
If I'm understanding all of this correctly (it's a huge if!), the index could be forming the bottom for a strong rally into the top of the channel, completing my proposed Minute wave iv.
In the weekly time frame, the hammer in the third week of January is huge, and this past week we didn't get a bearish engulfing, so it looks like a correction, keeping the hammer reversal pattern intact. I've been noticing that these weekly hammer and bullish engulfing patterns are quite powerful - it seems to me they represent bottoms formed by institutions...
So, let's see how it behaves in the lower time frames, let's see if:
- The 1 hour support trend line holds and price breaks out the resistance trend line, and if then manages to reach the bottom of the Ichimoku Cloud at 1900;
- 15 min bullish engulfing confirms the break out of both the resistance trend line and the Ichimoku Tenkan Sen, and if then price reaches the top of the Cloud (could also be at 1900 at the time price reaches it).
You know, step-by-step, carefully... not easy...