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Hello everyone! Originally there was not a newsletter scheduled for today, but I’ve found myself with a few spare moments so I wanted to post a quick update. This update will build on yesterday’s newsletter, specifically the last line regarding flats.
- Today’s bounce provides a great deal of useful information… First, it very clearly is NOT the ‘relentless and aggressive’ selling that the bears needed for the orange path. In fact, this bounce is even stronger and more immediate than it would be in the extended 5th scenario discussed last night…
You may recall the final line in yesterday’s newsletter briefly alluded to this scenario, “a more immediate bounce here would open up the possibility of flats within wave-ii… I will discuss this more if it becomes relevant.” This appears to be the case here, putting the blue count back in business and tells us that wave-ii is still in progress.
- Today’s reversal means the move down this week was a three wave corrective move. Essentially, it was simply a connecting wave within a larger corrective structure (expanded version for $NQ). This action suggests wave-ii is still in progress. Let’s look at a few ways it could unfold from here…
- Shown above are the different structures that could develop off today’s move. The price action through the rest of the week will help narrow down a specific path. The end result is generally the same in all three. I will discuss this in more detail in the Weekend Prep.