With the breakout of 3400 and the deep retracement till 3330 we have to redraw the entire Elliot structure, with the price back in wave2. This structure will be confirmed just if the price hold the support in area 3315/3308. A rebound could find the first resistance in area 3400.
With the breakout of 3308 we'll be back in the ABC structure, with the...
Definitely left the range with top 3440, which is now the first support and up to where the price could retrace, the scenario is positive with the next target posted in area 3530/3550 which should be the end of wave3 of the new Elliot structure.
Current exposure: Delta neutral
Delta positive just with a daily close above 3470
After having tuch another time the bottom of the range, the price regain ground till reach the top.
Tomorrow, on hourly close above 3440 is confirmed the target at 3470 first, then to 3500.
Scenario will change just with an hourly close below 3400.
With the today's High the waveC is ended. Due to a thin trading day (Wall Street closing) the index has retraced till 23.6% Fibonacci level of the range B-C.
The breakout of level 3400 could bring the price first to 3380 then to 3360.
On the other side, the breakout of today's High could bring the price in area 3460/3470 first, then in area...
After the US CPI data, the price did a new Low and regain very quickly ground.
In hourly time frame this Low should be the end of the corrective WaveB of the pattern (ABC).
An evident divergence in the RSI should be the a signal for a long target in area 3450 (WaveC)
Confirmation should be provide with the breakout of 3368/3370
With the minimun of the 9th February, which rapresent 38.2% Fibonacci retracement of the entire Elliot Wave's structure, should be concluded the corrective pattern (ABC).
Short term target:
Upside area 3450/3460
Just with the breakout of 3307 first target in area 3215/3220.